Peab’s board of directors propose issue of convertibles to all employees

Peab’s board of directors has decided to propose to the Annual General Meeting on May 12, 2005 the issue of convertible loans for a nominal total value of SEK 480 million. The convertible loans will be offered to all employees. Peab will issue a total of 6 million convertible loans, which will run from June 16, 2005 to June 15, 2008. Each convertible loan can, during part of November 2007 and May 2008, be converted to a share of the B series in Peab. The offer to participate in the programme has been submitted to all employees on market terms, and each employee is entitled to subscribe to at least 400 convertible loans. Personnel can subscribe during the period from June 16 to June 30, 2005. Peab would like through the proposed issue to give all employees an opportunity to take an active part in the development of the company, which will contribute to their participation and dedication. With a view to neutralising any dilution effects the board of directors intends to propose to the AGM a repurchase resolution that also includes being able to repurchase on the market and cancel the same number of B shares that may come to be issued in conjunction with the conversion of the convertible loans. Further information will be included in the notice convening the Annual General Meeting. The complete terms will be made public not later than two weeks prior to the AGM. For further information contact: Mats Paulsson, MD Peab +46 431-89000 Mats Leifland, deputy MD 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