Veidekke — Earnings Release 2010

May 6, 2010

Improvement in first quarter for Veidekke

Veidekke's first quarter results show an improvement compared to the

challenging past year. "We've passed safely through the financial crisis. The

harsh winter we've endured and the demanding market we are in have taken some

toll, lowering our operating revenues by 5% versus the same quarter last year.

Today, however, we are experiencing increased activity in housing development,

and the Construction segment's orders-on-hand have increased by about 20% from

same time last year", says CEO Terje R. Venold.

Veidekke's turnover in the first quarter was MNOK 3 148 (MNOK 3 325). Operating

income was MNOK -16 (MNOK -102) while profit before tax was MNOK -14.3 (MNOK

-133.5). Orders-on-hand for the Group's Construction segment is of BNOK 12.1

(BNOK 9.9). Following the changes in the Norwegian contractual early retirement

scheme (AFP), previous year's pension allocations have been reversed, giving a

gain of MNOK 95 in the financial accounts in the first quarter.

"These are still challenging times for our industry with pressure on

construction margins. But with good prospects in the property market, the

significant lag in public investment in road and rail, as well as our Industry

segment's good contract-winning performance for this year's asphalt contracts

for the Norwegian Public Roads Administration, gives reason for optimism", says

CEO Venold.

Construction segment

A demanding market situation with overcapacity and keen price competition in

certain segments put pressure on margins and weakened results. The severe winter

has also contributed to higher costs and lower productive efficiency. Turnover

for the total segment was BNOK 2.787 (BNOK 2.942) in the first quarter and

earnings were MNOK 139 (MNOK 102). Profit margin for the quarter was 5.0%

(3.5%).

Property

The positive development from the second half of 2009 continued in the first

quarter. In Oslo and Stockholm in particular, housing sales are increasing, and

new projects are being initiated. If the trend continues, Veidekke could have up

to 1,000 apartments under production by year's end. Sales for Veidekke's

Property segment totalled MNOK 134 (MNOK 144) for the quarter while profit ended

at MNOK -11 (MNOK -38).

Industry

Industry's activities were also impacted by the harsh winter which led to lower

activity within crushed stone and gravel, and recycling. The first quarter is

seasonally characterised by low activity regardless, and the quarter is counted

as an expense quarter. Total turnover for Veidekke Industry in the first quarter

was MNOK 252 (MNOK 275), with earnings of MNOK -127 (MNOK -180).

HSE

Sickness absence for all employees in Norway was 5.6% (5.4%). For all employees

in Sweden, sickness absence was 3.1% (2.7%) and in Denmark 2.5% (2.0%). The

injury rate (number of lost time injuries per million hours worked) for the

entire group was 5.8 (4.5) at the end of the first quarter.

See also the Board's report for the first quarter of 2010 which is attached to

this press release.

For more information contact:

President & CEO Terje R. Venold, tel. +47 21 05 77 01 / +47 90 58 23 23

terje.venold@veidekke.no

Executive Vice President/CFO Jørgen W. Porsmyr, tel. +47 21 05 76 44 / +47

90 75 90 58

jorgen.wiese-porsmyr@veidekke.no

Communications Director Kai Krüger Henriksen, tel. +47 21 05 77 04 / +47

90 51 93 60,

kai.henriksen@veidekke.no

See also

http://www.veidekke.com/reports/2010/quarter/1/veidekke_in_1_quarter_2010/

VEIDEKKE ASA

Veidekke ASA is a leading Scandinavian building contractor and property

developer with 6,000 employees and turnover of NOK 15.6 billion (2009). The

group is listed on the Oslo Stock Exchange and has a dispersed ownership

structure with the employees owning 19.3 % of the stock. The business spans a

wide spectrum of building and construction projects, developing housing and

commercial buildings for private and public sector clients, asphalt plants and

road maintenance as well as collecting and recycling waste.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1412425]