Veidekke's profits for the second quarter were NOK 50.0 million, somewhat weaker than last year. This can mainly be ascribed to a dull housing market and weaker sales of dwellings. However, the construction activities are making good headway.

"We have strengthened our market position in most areas, and the volume and quality of our orders give room for profit improvements in the time ahead," says Mr. Venold.

"It is in Norway that our construction activities have made most headway, but it is also encouraging to register significant improvements in Denmark and Sweden," he adds.

In the field of property development, Veidekke's figures naturally reflect the weak housing market, but Veidekke sees clear signs of rising sales of dwellings following the cut in the interest rate in the summer and believes there is reason to look more optimistically at the future.

The figures for the Industry Division have been affected by the fall in volumes for both asphalt and recycling. In the asphalt sector, the fall in volumes has also put pressure on prices. After the Public Roads Administration reorganised its asphalt operations as a separate company (Mesta), keener competition was expected both for asphalt contracts and for contracts for operation and maintenance of national highways and county roads.

"Over the past few years we have put considerable effort into cutting costs and improving productivity in our asphalt operations," says Mr. Venold. "We wanted to be as well prepared as possible for sharper competition, and we see now that we are probably one of the private players that have least affected by the fall in volume."

Veidekke has been awarded seven of the contracts that have been put out to tender so far for operation and maintenance of national highways and county roads. These have a total production value of NOK 90 million per year for four years. The remaining seventy-five per cent are to be put out to tender over the next three years.

Reference is also made to the Board of Directors' report for the second quarter 2003, which is enclosed with this press release.

For further information, please contact:

Terje R. Venold, President and CEO,

tel. +47 21 05 77 01 / 905 82 323

Arne Giske, Senior Vice President & CFO,

tel. +47 21 05 77 80 / 905 89 526

Jørgen G. Michelet, Director, Finance and Investor Relations,

tel. + 47 21 05 77 22 / 917 43 856

Kai Krüger Henriksen, Senior Vice President, Communication,

tel. +47 21 05 77 04 / 905 19 360