Peab Industri proposes new convertibles to new employees

The board of Peab Industri has decided to issue convertibles to the face value of all in all SEK 46.4 Million at the most, provided that the Annual General Meeting is in approval on 15 May 2008. Peab Industri will issue 800,000 convertibles at the most.

The convertibles will extend from 1 December 2008 until 30 November 2012. Every convertible can be converted during part of the month of December 2010 and 2011 and part of the month of September during 2012, to a series B share in Peab Industri AB. The offer of participation in the programme will be given to staff employed after 15 November 2007 or employees in companies acquired after 15 November 2007. The offer is made on market conditions and every new employee may subscribe for a minimum of 200 convertibles. Employees´ subscription will take place during the period of 26 November 2008 until 12 December 2008.

During 2007 Peab Industri offered all employees to subscribe to convertibles. 42 per cent of the employees chose to participate in the programme. In all 6 Million convertibles were issued to the face value of SEK 396 Million. The convertibles extend until 30 November 2012 and each convertible can be converted to a series B share in Peab Industri at SEK 66.

By the proposed issue Peab Industri will provide all new employees the opportunity to take part in the development of the company, which will lead to enhanced participation and commitment.

The board of Peab Industri aims to propose to the Annual General Meeting a power of repurchase of shares in Peab Industri, with the object of lowering the dilution effect that arises in connection with the possible conversion of convertibles issued by the company.

Further information will follow on the Peab Industri´s summons to the Annual General Meeting. The full conditions for the convertibles will be made public at least two weeks before the Annual General Meeting.

– As Peab Industri grows the number of employees in the group increases. We think it is important that our new employees as well as the ones employed in the acquired companies get the same opportunities as earlier have been given to the staff, to subscribe to convertibles in Peab Industri and thus also get the possibility to take part in the added value that they participate in creating, CEO of Peab Industri, Mats O Paulsson comments.

For additional information, please contact:
Staffan Bremander, Corp. Comm. Mgr. Peab Industri + 46 733 37 11 10
Niclas Winkvist, CFO Peab Industri +46 431 44 96 05


Peab Industri AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 am on 27 March 2008.

Previous press releases from Peab Industri are available at www.peabindustri.com.