"Our construction operations in Norway continue to make favourable progress, and the rise in housing sales both in the second half of 2003 and in the first quarter of this year are now reflected in better profits," says Mr. Venold.

Veidekke's operations in Sweden continue to improve, although profits have still not reached a satisfactory level. However, the level of activity, order volumes and the adjustments that were made in Skåne in 2003 indicate that there is a good possibility that these positive developments will continue.

The results of Veidekke's Danish division, Hoffmann, have been affected by a necessary reorganisation in Jylland, where operations are being concentrated in one region and adjusted to a lower level of activity. A downward adjustment has also been made in the estimated profits for two of Hoffmann's projects.

The Industry Division's figures reflect the fact that asphalt activity is slow during the winter months. However, Kolo Veidekke's share of the new contracts for the Public Roads Administration promise to give it a higher volume in 2004 than in 2003.

Turnover for the first quarter 2004 was NOK 2,653 million, compared with NOK 2,255 million for the first quarter 2003. Cash flow per share was NOK 1.3, as against NOK 1.1 at the same time last year. The Group reported a pre-tax loss of NOK 0.9 million for the quarter, compared with a loss of NOK 13.1 million at the end of the first quarter in 2003. This gives earnings per share of NOK -0.1, compared with NOK -0.4 at the same time last year.

The Group's operating profit for the first quarter was NOK 4.4 million, as against NOK 0.3 million last year, after goodwill amortisation amounting to NOK 13.4 million and NOK 13.5 million respectively. Net financial items were NOK -6.5 million (NOK -8.2 million).

Veidekke has had a satisfactory inflow of orders in the first three months of the year. Total orders-on-hand for construction operations stood at NOK 8,188 million at the end of the quarter, as against NOK 8,120 million at the beginning of the year and NOK 7,958 million at the same time last year.

Reference is also made to the Board of Directors' report for the first quarter 2004, 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