Veidekke reported a turnover for the second quarter of NOK 4,023 million (NOK 3,983 million last year), while the figure for the first six months was NOK 7,286 million (NOK 6,853 last year). The Group's orders-on-hand totalled NOK 12,308 million at the start of the third quarter, as against NOK 10,902 million at the beginning of the year and NOK 10,536 million at the same time last year.

Activity is generally high in all areas of the Veidekke Group. Its construction operations in Scandinavia show a growth of almost 13 per cent compared with last year and order books have swelled by 17 per cent compared with last year. "We focus on profitability rather than growth, but the relatively steep increase in profit is the result of a good market and high activity," says President and CEO Terje R. Venold. "However, as long as we can see a continuous improvement in profit performance, we are satisfied."

The good housing market in all three Scandinavian countries is also an important element in the substantial increase in profit, not only because of good housing sales, but also as result of the positive synergies between construction and property development. All in all, Veidekke has nearly 1,700 dwellings under construction in the three countries, and only five completed dwellings remain unsold.

There are several business areas which have contributed to the good second-quarter results for the Group's Norwegian operations. Construction operations achieved a 14 per cent growth in turnover and better margins. The level of building activity was very high and the results were also good in heavy construction. The positive situation in property development continued, but the relatively high prices for development sites in central areas have led to somewhat lower production. The industry division also made good headway, in spite of slightly lower asphalt volumes than in the same period last year.

There was an overall improvement in the second quarter for Veidekke's Danish operations, which showed a growth in turnover of 17 per cent and a correspondingly satisfactory increase in profit. Building operations in particular show a strong upswing, and the proportion of directly developed contracts and partnering agreements continues to rise. For the fairly recently established property development operations, the situation for both turnover and profit is very positive.

Operations in Sweden show a stable development. Turnover increased from NOK 358 million in the second quarter last year to NOK 451 million this year. The NOK 4 million loss in the same period last year was transformed into a profit of NOK 21 million. Turnover for construction operations rose by 10 per cent in the second quarter. House-building activities show the greatest increase, while the cost of capacity building in heavy construction is pulling profits down somewhat.

In the west of Sweden, Veidekke is due to take over the building and construction operations of SBS Entreprenad in August. SBS had a turnover of SEK 482 million in 2005, and profitability is good. These operations represent an important supplement to market activities and will make Veidekke one of the leading players in the Gothenburg region.

Reference is also made to the Board of Directors' Report for the Second Quarter 2006, which is enclosed with this press release.

Please address any questions to:

Terje R. Venold, President and CEO, tel +47 21 05 77 01 / 905 82 323

Arne Giske, Executive Vice President CFO, tel +47 21 05 77 80 / 905 89 526

Jørgen G. Michelet, Financial Director and Head of Investor Relations,

tel +47 21 05 77 22 / 917 43 856

Kai Krüger Henriksen, Executive Vice President Communication,

tel +47 21 05 77 04 / 905 19 360