Veidekke — M&A Activity 2010

Sep 28, 2010

Veidekke to take over Entreprenør M. Kristiseter AS

Veidekke is purchasing all the shares in Entreprenør M. Kristiseter AS, a move

that will make it one of the leading contractors in Møre og Romsdal in

north-western Norway. Headquartered in Åndalsnes with a branch office in

Ålesund, Kristiseter has 80 employees and posted revenues of MNOK 200 in 2009.

Founded in Åndalsnes in 1945 by Martin Kristiseter as a construction machinery

and concrete contractor, Entreprenør M. Kristiseter AS is today one of the

largest contractors in Møre og Romsdal. In the last 25 years the bulk of its

business has been in the Ålesund area.

The owners and management of Kristiseter are very positive to the acquisition of

the company by Veidekke. An Acquisition Letter of Intent was signed this spring

with the company's recently deceased principal owner Svein Kristiseter, and the

transaction will now be completed in cooperation with his descendants and the

company's board and management.

"With this acquisition Veidekke will become a full-service partner for customers

in north-western Norway. We already have extensive asphalt, gravel and

aggregates business plus the ground contractor Grunnentreprenøren UFO, and will

be complementing this with Kristiseter, a leading construction contractor," says

Carl Inge Veland, regional manager of Veidekke Entreprenør AS. "We have on a

number of occasions worked well with Kristiseter on implementing projects in the

region, and the recently commenced MNOK 120 renovation of Ålesund City Hall is a

good example of this. We believe that by combining Veidekke's expertise in

project development and turnkey contracts with Kristiseter's excellent

implementation resources and solid position in the local market, we will be able

to expand and become established as a leading player in this part of the

market," adds Veland.

For more information please contact:

Veidekke Regional Manager Carl Inge Veland, tel. +47 55 38 70 00 /

91 30 08 95,carl-inge.veland@veidekke.no

General Manager Stig Mork of Kristiseter, tel. +47 70 17 72 14 /

90 54 26 26,stig@kristiseter.no

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

905 82 323,terje.venold@veidekke.no

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

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

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

revenues of NOK 16 billion. Activities include building and construction

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

maintenance and recycling. Our values are to be professional, honest,

enthusiastic and pioneering. Our goals for health and safety and the environment

are as important to us as our financial goals. Veidekke is characterised by a

decentralised organisational 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#1447381]