PEAB PARTNER IN NEW REAL ESTATE COMPANY FOCUSED ON RENTALS

• Transfers property valued at SEK 440 million to a new real estate company, Tornet AB • Will become partner with 45 % ownership in Tornet AB Peab, Fabege and Brinova are together founding a new real estate company, Tornet AB, which will own rental properties. The company will focus on developing and managing existing property as well as produce new rentals in municipalities with housing shortages primarily in the Stockholm, Mälardalen, Gothenburg and Öresund regions. Peab and Fabege will each own 45 % while Brinova will own 10 % of Tornet AB. In January 2010 Peab will contribute in kind a total of 314 rentals as well as commercial premises, all together around 49,000 square metres in rental property valued on the market at SEK 440 million, which corresponds to its book value. Peab gained ownership of the bulk of the property in 2009 when it acquired Annehem Fastigheter. The property is concentrated to the Skåne region, in particular Landskrona and Ystad. The existing loan financing of the property will be transferred to Tornet AB. Peab’s share in Tornet will, after transactions which will take place in the first quarter of 2010, amount to 45 % and will be recorded at SEK 280 million. These transactions will not have any effect on Peab’s profit. In addition, Tornet AB, Folksam and Riksbyggen have signed a Letter of Intent to build a production company, Tornet Bostadsproduktion AB, 62 % of which will be owned by Tornet AB while Folksam and Riksbyggen will own 19 % each. Tornet Bostadsproduktion has identified a significant need for new rental properties and intends to produce between 500 and 700 rentals annually, which is equivalent to investments of between SEK 800 and 1,200 million. “We will create the prerequisites for starting up production as soon as possible of new rentals, which are greatly needed today, by providing Tornet Bostadsproduktion with knowledge, capital and good partners,” says Mats Paulsson, President and CEO of Peab. For additional information, please contact: Mats Leifland, Deputy CEO Peab +46 733 371006 Gösta Sjöström, CIO, Peab +46 733 371010 This information is such that Peab AB is obliged to publish in accordance with Swedish law regarding the securities market and/or the Financial Instruments Trading Act or has itself chosen to publish. The information was submitted for publication at 08:35 a.m. on 20 November 2009. Previous press releases from Peab are available at www.peab.se Peab is one of the leading construction and civil engineering companies in the Nordic countries, with about 13,000 employees and net sales exceeding SEK 35 billion. The Group’s subsidiaries have strategically located offices in Sweden, Norway and Finland. The Corporate Office is located in Förslöv on Bjärehalvön in southern Sweden. The share is listed on NASDAQ OMX Stockholm. Group Staff Information: Gösta Sjöstrom, CIO Peab +46 733 371010 gosta.sjostrom@peab.se Background information: Tornet AB will have three owners, Fabege and Peab AB, which own 45 % each, and Brinova Fastigheter which will own 10 %. On 4 January 2010 the owners will contribute in kind a total of 2,176 rentals, all together around 200,000 square metres in rental property, which will generate a stable source of revenue for the company over time. The property is concentrated to the Skåne region, in particular Landskrona and Kristianstad as well as the Stockholm region, primarily Tensta/Rinkeby. The existing loan financing of the property contributed in kind will be transferred to Tornet AB. The recorded value of the real estate in Tornet will amount to some SEK 1,670 million and equity will total around SEK 620 million. Rent revenues will be approximately SEK 170 million and estimated management net will be around SEK 85 million. In addition, Tornet AB, Folksam and Riksbyggen have signed a Letter of Intent to build a production company, Tornet Bostadsproduktion AB, 62 % of which will be owned by Tornet AB while Folksam and Riksbyggen will own 19 % each. Tornet Bostadsproduktion AB will have a stable financial base and good partners. This is underlined by the fact that Folksam and Riksbyggen will be partners in the company and go in with a shareholder loan of up to SEK 200 million each. Göran Wendell, who has years of experience working in real estate, will be the CEO of Tornet AB and Tornet Bostadsproduktion AB. He has been MD for Svenska Bostäder and Bostads AB Poseidon, and also held several positions in Riksbyggen. Allan Sörensen, former MD of Riksbyggen, will be appointed Chairman of the Board. Tornet AB and Tornet Bostadsproduktion AB will start up operations in the first quarter of 2010 and will employ around 15 people. Tornet AB will be domiciled in Skåne and Tornet Bostadsproduktion AB will be domiciled in Stockholm.