Veidekke — M&A Activity 2010

Dec 15, 2010

Veidekke and Hæhre to move forward together

Following many years of cooperation, Veidekke Entreprenør AS and Albert Kr.

Hæhre AS have agreed to move forward together through Veidekke's purchase of

51% of the shares in the Hæhre group's contracting operations. This is an effort

that strengthens both companies' competitive ability.

The market outlook for large construction projects is good, particularly in the

road and railway sectors. The size and complexity of contracts is escalating,

and this has resulted in an increased struggle for expertise and capacity.

"If we are to maintain a leading position in this market, we have to be the

best. It is therefore a pleasure to announce our new future together with Albert

Kr. Hæhre and his associates," says Dag Andresen, Managing Director of Veidekke

Entreprenør AS. "Our cooperation on the E18 Sky - Langangen project has proven

that together we are capable of taking on large and complex operations, and that

the two companies' corporate cultures have a lot in common," Andresen adds.

The combination of Veidekke's leading position in the area of large and complex

concrete and tunnel work and Hæhre's leading position in the field of

earthworks, contributes towards creating a comprehensive contractor for major

construction projects.

"The entire Hæhre system looks forward to the future together with Veidekke with

pleasure and enthusiasm," says founder Albert Kr. Hæhre. "Cooperation with

Veidekke has always been good, and cooperation on the Sky - Langangen project

proves in the best possible sense that two plus two equals far more than four,"

says Hæhre.

It was yesterday afternoon that the letter of intent on establishing the

cooperation was signed. It is Hæhre Entreprenør AS, Hæhre Maskinutleie AS and

Hæhre Mek. Verksted AS that will constitute the new company, while the remaining

companies in the Hæhre group will remain under the ownership of the current

owners. In the period until March due diligence processes will be carried out.

For more information please contact:

Albert Kr. Hæhre, Chairman of the board of Albert Kr. Hæhre AS, tel.  +47

90 98 14 60,albert@akh.no

Dag Andresen, Managing Director of Veidekke Entreprenør AS, tel. +

47 21 05 50 00/ +47 915 51 410,dag.andresen@veidekke.no

Terje R. Venold, CEO, Veidekke ASA, tel. +47 21 05 50 00 /

+47 90 58 23 23,terje.venold@veidekke.no

Kai Krüger Henriksen, Communications Director, Veidekke ASA, tel.

+47 21 05 50 00 / +47 90 51 93 60,kai.henriksen@veidekke.no

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#1472601]