Veidekke's financial results at the end of the second quarter reflect positive growth and development in the company. Pre-tax profit rose from MNOK 208.5 last year to MNOK 241.5 this year and orders-on-hand now total BNOK 15.5. "This was a very strong quarter for the Group as a whole, in spite of disappointing project deviations in Denmark and to some extent in Sweden. Profits improved by as much as 16 per cent, and construction operations increased their order backlog by 26 per cent compared with the same period last year," says President and CEO Terje R. Venold.

Veidekke's turnover for the 2nd quarter 2007 was MNOK 4,792, as against MNOK 4,023 for the same quarter last year. The Group's operating profit for the 2nd quarter was MNOK 212 (MNOK 176), giving a pre-tax profit of MNOK 241.5 (MNOK 208.5) and earnings per share of NOK 1.3 (NOK 1.0).

Norway

The quarterly figures for operations in Norway make very pleasant reading. Construction operations achieved an operating margin of 5.8 per cent (4.7 per cent), higher volumes and orders-on-hand totalling MNOK 10,163 (MNOK 7,668). Property development also reported solid profits and a good sales ratio in spite of somewhat slower house sales than before. The industry division showed a marked improvement where asphalt operations got off to an early start and Veidekke was awarded a high share of new asphalting contracts.

Denmark and Sweden

Profit figures in Denmark have been seriously affected by two problem projects on Zealand, which resulted in a loss of MNOK 45.6 in the second quarter. Swedish operations as a whole show an upward trend, although the quarterly figures in Sweden were weaker than anticipated due to a loss-making project on the west coast.

"Although we expect the growth rate to be lower than in previous years, the prospects for the international economy and for Scandinavia are still bright. The good building and construction market should therefore continue in the second half of 2007 and in 2008," Mr. Venold concludes.

Reference is also made to the Board of Directors' report for the 2nd quarter 2007, which is enclosed with this press release.

Terje R. Venold, President and CEO, tel. 21 05 77 01, mobile 905 82 323, terje.venold@veidekke.no

Arne Giske, Executive Vice President, CFO, tel. 21 05 77 80, mobile 905 89 526, arne.giske@veidekke.no

Kai Krüger Henriksen, Executive Vice President Communication, tel. 21 05 77 04, mobile 905 19 360, kai.henriksen@veidekke.no

Veidekke ASA is a leading Scandinavian building contractor and property developer with 6,350 employees and an annual turnover of NOK 16.4 billion (2006). Veidekke is listed on the Oslo Stock Exchange. It has a wide group of shareholders and 15 % of the shares are held by the company's employees. The company's activities cover a large range of building and construction contracts, development of housing and commercial projects for private and public customers, asphalt operations and road maintenance, and collection and recycling of waste.