(Oslo, 13 January 2006) Block Watne Gruppen ASA was created through the acquisition of all the shares in Block Watne AS and Hetlandhus AS on 30 November 2005. All activity takes place in Block Watne AS subsidiary.

The Block Watne AS subsidiary achieved NOK 397 million in its operating revenue during the fourth quarter 2005 against NOK 316 million for the same period in 2004, representing an increase of 26 per cent. For 2005 the operating revenue is NOK 1491 million against NOK 1228 million in 2004 which is an increase of 21 per cent. Earnings before interest and tax (EBIT) in fourth quarter 2005 is NOK 72 million against NOK 49 million for the same period in 2004, representing an increase of 46 per cent. For 2005 as a whole, EBIT is NOK 228 million against NOK 157 million in 2004, an increase of 46 per cent.

 

Since Block Watne Gruppen ASA was created on 30 November 2005, it is only reporting figures for the last month of the year. The group had a turnover of NOK 89.6 million and EBIT of NOK 11.4 million in December 2005 (NGAAP). In addition, it is presenting fourthquarter and preliminary 2005 figures for Block Watne AS in order to provide an easier comparison with historical figures.

 

The Block Watne AS subsidiary achieved NOK 397 million in its operating revenue during the fourth quarter 2005 against NOK 316 million for the same period in 2004, representing an increase of 26 per cent. For 2005 the operating revenue is NOK 1491 million against NOK 1228 million in 2004 which is an increase of 21 per cent.

 

Earnings before interest and tax (EBIT) in fourth quarter 2005 is NOK 72 million against NOK 49 million for the same period in 2004, representing an increase of 46 per cent. For 2005 as a whole, EBIT is NOK 228 million against NOK 157 million in 2004, representing an

increase of 46 per cent.

 

Net financial income came to NOK 3 million for the fourth quarter as against NOK 2 million the year before, and NOK 12 million for the full year compared with NOK 11 million in 2004.

 

Earnings before tax (EBT) for Block Watne came to NOK 68 million for the fourth quarter, compared with NOK 47 million in 2004. This represents an increase of 43 per cent. EBT for the quarter reflects a relatively high proportion of completed projects during the period. For 2005 as a whole, the company's EBT is NOK 216 million as against NOK 146 million for the previous year. This represents an increase of 48 per cent.

 

"Summing up the year, we can report a substantial increase in operating revenue, a strong improvement in results, a higher order backlog and a good cash flow," comments chief executive Lars Nilsen. "That gives us good momentum into 2006."

 

The pro forma accounts for Block Watne Gruppen ASA are based on the actual accounts for the group companies in 2005 and 2004. Cost of goods sold has been adjusted for the transfer back of additional value in land achieved through the acquisition of Block Watne AS. In addition, financial items have been included as if Block Watne Gruppen ASA were established at 1 January 2004. These corrections have no cash effect.

 

All accounts have been prepared in accordance with the International Financial Reporting

Standards (IFRS) unless otherwise specified.

 

For complete details of the accounts, please see the enclosed quarterly report.