Subscription made to Peab Industri Convertibles 2007/2012 I and 2007/2012 II

- Amount of convertibles SEK 594 Million
- 9,000,000 new convertibles
- SEK 66 conversion price
- 5.44 per cent convertible interest

On 16 May 2007 the Annual General Meetings of Peab Industri and Peab decided to approve the decision of the Board that Peab Industri should issue a convertible debenture loan for a total nominal value of SEK 400 Million at the most, which can be converted to B-shares by issuing 6,666,667 convertible debentures at the most, with a maturity date from 1 December 2007 until 30 November 2012 (Peab Industri Convertible Promissory Notes 2007/2012 I).

The right to subscribe to convertibles, with a departure from the preferential rights of shareholders, devolves on a wholly owned subsidiary to Peab Industri AB, with the right and obligation of the subsidiary to offer the employees in Peab Industri AB Group and Peab AB Group the opportunity to acquire the convertibles as of 26 November 2007 to 12 December 2007.

The Extraordinary General Meeting on 13 August 2007 further decided that Peab Industri AB shall issue a convertible loan for a total amount of SEK 200 Million at the most, which can be converted to B-shares by issuing 3,333,333 convertible debentures at the most, with a maturity date from 1 December 2007 until 30 November 2012 (Peab Industri Convertible Promissory Notes 2007/2012 II). The offer is in its entirety directed to Peab AB.

The wholly owned subsidiary of Peab Industri has on 1 December subscribed to Peab Industri Convertibles 2007/2012 I with an amount of SEK 396 Million corresponding to 6,000,000 convertibles at the conversion price of SEK 66.

Peab AB has on 1 December subscribed to Peab Industri Convertibles 2007/2012 II with an amount of SEK 198 Million corresponding to 3,000,000 convertibles at the conversion price of SEK 66.

If all the convertibles are converted to shares the dilution will be 10.56 per cent of the share capital and 5.19 per cent of the votes, based on the number of shares registered today. The convertible interest is based on the 5-year swap interest as of 1 December 2007, with a margin of 0.75 per cent and has been set at 5.44 per cent.

Each convertible may during the period 1-15 December 2010, 1-15 December 2011 as well as during the period 16-30 September 2012 be converted to a share in the B series in Peab Industri.

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


This information is such that Peab Industri AB is obligated to publish in accordance with the Swedish Act regarding the Securities Market and/or the Financial Instruments Trading Act or has itself chosen to publish.

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