NCC Group

M&A Activity • Oct 13, 2010

2010-10-13 No 44/10

NCC to construct new city hall block in Kristianstad for SEK 470 million

NCC Construction Sweden has obtained a letter of intent from Kristianstad Municipality concerning a rebuild of the city hall block, the City's municipality and regional building. The façades of the old block will be preserved, while office premises and the number of workplaces will be increased. The project, which will be implemented on a partnering basis, is scheduled to commence in summer 2011 and be completed in 2014.

The partnering cooperation will occur in two phases. In the first phase, commencing immediately, the parties will join forces to prepare construction documents and plan the project, while also agreeing on a price. Only then will the Municipality decide whether NCC will receive the assignment to implement the project. Currently the total order value is estimated to SEK 470 million.

This will be the first time that Kristianstad Municipality has engaged in partnering negotiations.

"We want to capitalize on the contractor's knowledge early in the project, while the Municipality and Region Skåne will maintain strong control and influence throughout the process," says Patrik Möller, Project Manager at the Management Office of Kristianstad Municipality.

The Municipality's evaluation showed that NCC has long-term traditions when it comes to partnering projects and planning systems for contracting operations.

Partnering is a structured form of cooperation whereby developers, consultants and contractors jointly solve construction assignments. The methods are based on transparent and honest cooperation allowing various areas of expertise to complement each other throughout the construction process.

More about partnering: www.ncc.se/NCCpartnering

The project will employ approximately 50 individuals and the order is expected to be registered no earlier than the third quarter of 2011.

For questions, please contact: Per-Ola Martinsson, Business Manager, NCC Construction Sweden, Region South, Tel: +46 (0)70 58 90 378

NCC AB

Postadress 170 80 SOLNA Patrik Möller, Project Manager, Kristianstad Municipality, Tel: +46 (0)733 135178 Magnus Jonsson, Head of External Communication and Media Relations, NCC AB, Tel: +46 (0)8 585 522 46, +46 (0)70 817 8711 NCC's media line: +46 (0)8 585 519 00, E-mail: press@ncc.se

All of NCC's press releases are available on www.ncc.se

NCC is one of the leading construction and property development companies in the Nordic region. NCC had sales of SEK 52 billion in 2009, with 18,000 employees. NCC Construction Sweden constructs residential and office properties, roads, civil-engineering structures and other infrastructure in Sweden.

NCC AB

Postadress 170 80 SOLNA Besöksadress Vallgatan 3, SOLNA Kontakt Tel: 08-585 510 00 Fax: 08-85 77 75 www.ncc.se

Org.nr (publ) Org.nr 556034-5174 Solna