Geveko divests contracting business in the UK

Geveko has signed an agreement concerning divestment of the Group's contracting business conducted within the subsidiary Line Markings Ltd and Rommco Ltd in Bradford.

The buyer is the company EUROVIA Group Ltd. part of EUROVIA SA. EUROVIA is the leading player in Europe in road construction. EUROVIA Group Ltd. also assumes employees of Line Markings Ltd and Rommco Ltd.

The divestment will provide positive effects for Geveko. Geveko continues to operate in Britain in the sale of pre-fabrictaed thermoplastic products and other materials that are not marketed by Line Markings, including the manufacture of glass beads.

"The financial crisis and budget cuts in Europe added to overcapacity and competitive situation in the UK market presents many challenges for those engaged in contracting work and thus aquisition and mergers are necessary for the industry. Geveko's decision to divest this business in the UK is in line with the previously announced strategy to rationalize the non-profitable markets, says CEO Stefan Tilk”

Göteborg, Sweden December 22, 2011
AB GEVEKO (publ)

For further information:
Mr Stefan Tilk, CEO and Managing Director
Phone: +46 31 172945, Mobile: +46 702 499 419

Geveko is Europe's leading road marking company. Products and services help to create safer conditions on roads and consequently support Geveko's business concept of actively participating in improving road safety in Europe.

AB GEVEKO (publ) Org.nr.: 556024-6844, Box 2137, 403 13 Göteborg, Sweden

Phone: +46 31 172945, info@geveko.se www.geveko.se