Veidekke Bostad & Fastighet AB has acquired part of the 'Svea Artilleri' site from Vasakronan AB. The property is situated at Östermalm in Stockholm in the vicinity of the Swedish National Defence College and has very good transport connections.

The site has been approved by the authorities for the construction of two new blocks of flats with a total of 126 flats. One of the blocks will be a cylinder-shaped tower block of 16 floors with 70 flats. The other building will only have five floors and 56 flats. The area has been designed by architect Aleksander Wolodarski and the blocks of flats by ÅWL-arkitekter.

Veidekke Bostad & Fastighet AB will take possession of the property in January 2005. Construction will start in the summer of 2005 and will be completed in 2007. Sales of the new flats will begin in the spring of 2005.

The total cost of the project (including an underground car park) is estimated at approximately NOK 397 million.

"'Svea Artilleri' has all it takes to become a first class project, as it is situated in one of the most attractive housing areas in Stockholm today. Moreover, the design of both the area and the project will attract much attention to Veidekke from the housing market in Stockholm in the years to come," says Managing Director Håkan Bergquist of Veidekke Bostad & Fastighet AB.

For further information, please contact

Managing Director Håkan Bergquist,

Veidekke Bostad & Fastighet AB, phone +46 8 635 61 12

Project Manager Stefan Jonsson,

Veidekke Bostad & Fastighet AB, phone + 46 8 635 61 26

Senior Vice President Communication Kai Krüger Henriksen, Veidekke ASA

phone + 47 21 05 77 04, mobile phone + 47 905 19 360