Veidekke — Earnings Release 2010

Nov 4, 2010

Broad profit growth for Veidekke

Both turnover and profit increased for Veidekke in the third quarter compared

with the same period last year.  "We have delivered a good third quarter. The

most positive for the quarter was the housing market, which, with increased

sales and new project starts, improved significantly," says CEO Terje R. Venold.

Veidekke's turnover in the third quarter was MNOK 4 448 (MNOK 3 980 for the

third quarter of 2009). Profit before tax was MNOK 270 (MNOK 240), earnings per

share were NOK 1.50 (NOK 1.30) and profit margin for the quarter was 6.1%

(6.0%). The order backlog for the Group's construction operations now totals

BNOK 12.1 (BNOK 11.3).

"Our results for the third quarter confirm that the financial crisis is behind

us. But they also show, as in previous downturns, that the road to recovery is

slightly longer for the construction industry than for many other industries,

summarises CEO Venold.

Construction operations

Contracts currently under production in construction operations are largely

contracts entered into during the financial crisis and during strong competition

and tighter margins. With their higher volumes and improved margins, however,

Sweden and Denmark contributed positively and reduced the impact. Total sales

for construction operations in the third quarter were MNOK 3 187 (MNOK 2 840)

and operations earned a profit of MNOK 133 (MNOK 141). The profit margin was

4.2% (5.0%).

Property

The real estate market around the largest cities in Norway and Sweden continued

to show positive development in the third quarter with a significant increase in

sales and thus new project starts. In all, 216 dwellings were sold in the

quarter (100 in the same quarter in 2009). The number of dwellings under

production was 728 (194). Turnover for Veidekke's property operations totaled

MNOK 322 in the third quarter (MNOK 105), with a profit of MNOK 21 (MNOK - 12).

Industry

The quarter was marked by high activity in all business areas within industry

operations. Earnings increased 18% over the same period last year despite an

additional provision for losses on road maintenance contracts. Total turnover

for Veidekke Industry in the third quarter was MNOK 1 077 (MNOK 1 062), with

earnings ending at MNOK 136 (MNOK 115).

HSE

Sickness absence for all employees in Norway was 5.5% (5.8%). For all employees

in Sweden, sickness absence was 3.0% (3.0%) and in Denmark it was 2.3% (2.2%).

The injury rate (number of injuries per million hours worked) for the entire

group was 5.9 in the third quarter (4.9).

See also the Board's Report for the third quarter of 2010, which is attached to

this press release.

For more information contact:

President & CEO Terje R. Venold, tel 21 05 77 01 /

90 58 23 23, terje.venold@veidekke.no

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

90 75 90 58,jorgen.wiese-porsmyr@veidekke.no

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

90 51 93 60,kai.henriksen@veidekke.no

See also

http://www.veidekke.com/reports/2010/quarter/3/veidekke_in_3_quarter_2010/

VEIDEKKE ASA

Veidekke is one of Scandinavia's largest contractors with 6,000 employees and a

turnover of NOK 16 billion. Activities include building and construction

projects, residential developments, asphalt plants, gravel and aggregates, road

maintenance and recycling. Our values are professional, honest, enthusiastic and

pioneering. Our goals for health, safety and the environment, HSE, have equal

status with our financial goals.  Veidekke is characterized by a decentralized

organizational model with a strong corporate culture and a high degree of

employee involvement. Over half the employees are co-owners, holding 20% of

Veidekke's shares between them. The company is listed on the Oslo Stock Exchange

and has never declared a loss since it was founded in 1936.

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

(Norwegian Securities Trading Act)

[HUG#1458760]