Convertible debentures for Peab employees oversubscribed

At the beginning of June 2005, all Peab employees were offered the opportunity to subscribe for convertible debentures in Peab. The application period expired on 16 June. A total of 1,890 of Peab’s approximate 10,500 employees in Sweden, Norway and Finland applied to subscribe for convertible debentures to a total value of SEK 503 million, an oversubscription of SEK 24 million. A total of 5.5 million convertible debentures will be issued for a sum of SEK 478.5 million. The convertible debentures will run from 16 June 2005 and expire on 17 June 2008 with the right to convert in October 2007 and April 2008 at a conversion rate of SEK 87. The rate of interest on the convertible debentures is fixed at 2.69 per cent during their term. - I see the fact that the debentures were oversubscribed as a great strength, showing that today our personnel feel great confidence in our company and its future progress, comments Peab’s MD Mats Paulsson. For further information contact: Mats Leifland, CFO Peab +46 733 37 10 06 Gösta Sjöström, information manager Peab +46 733 37 10 10 Previous press releases from Peab are available at www.peab.com