Veidekke — M&A Activity 2010

Dec 17, 2010

Veidekke's acquisition of Hæhre

On 15 December Veidekke notified the stock exchange that a letter of intent was

signed concerning the purchase of 51% of the shares of the Hæhre group's

contracting operations. This is a result of several years of cooperation and is

an initiative that strengthens both companies' competitive ability.

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

road and railway sectors. The scope and complexity of projects is steadily

increasing, and with it a struggle for expertise and capacity. The combination

of Veidekke's leading position in large and complex concrete and tunnel works

and Hæhre's leading position in earthworks, creates a comprehensive contractor

for major construction projects.

As previously communicated, the Hæhre group has estimated a turnover in 2010 of

NOK 1 billion, an operating result of NOK 45 million and a pre-tax result of NOK

35 million. The Hæhre group has an estimated balance at year-end 2010 of approx.

NOK 800 million. Veidekke's purchase comprises the contracting operations in the

group through the companies Hæhre Entreprenør AS, Hæhre Maskinutleie AS and

Hæhre Mek. Verksted AS. Key financial figures for the three companies may be

found in the attached table.

The letter of intent entails a purchase of 51% of the shares in the three

companies for approx. NOK 150 million. Shareholders have further agreed on a

placement in the company of a total of NOK 150 million, such that Veidekke

contributes to the placement with NOK 76.5 million.

The heavy construction operation will thus have a strong financial position to

allow it to be well-equipped for further growth and development. Following the

placement it is expected that the enterprise will have a net interest bearing

debt of approx. NOK 120 million.

Mesta as has sued the Hæhre group with a demand for NOK 340 million in

connection with four previous Mesta employees' transfer to the Hæhre group. The

Hæhre group is of the opinion that the demand is unwarranted. The case is

expected to be heard in the Asker and Bærum District Court in the spring of

Veidekke will until the end of March 2011 carry out a due diligence process for

the entire acquisition that will also include this issue. The letter of intent

is based on Hæhre's perception of the case and any significant deviations may

affect execution of the letter of intent.

For further information, please contact:

Kai Krüger Henriksen, Communications Director, Veidekke ASA,

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

Jørgen G. Michelet, Financial Director, Veidekke ASA,

tel. +47 21 05 77 22 / + 47 91 74 38 56

jorgen.michelet@veidekke.no

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

(Norwegian Securities Trading Act)

[HUG#1473488]