"Naturally enough, the quarterly results reflect the fact that parts of the Group's operations are not productive during the winter months. This applies in particular to asphalt operations, but the harsh winter has also been a general problem for our entire construction operations," he says.

"Profits have risen in practically all our entities. However, the greatest jump can be seen in property development following a decision to sell a development project at Økern in Oslo and the non-residential part of a project at Skårer in Lørenskog where we are also developing a large housing project along with two other companies."

Veidekke's construction operations continue to show improvement, with most of the activity and the best results in Norway. However, growth and developments are now also positive in Denmark. In Sweden, building operations are stable and developing well, while activities and results in heavy construction reflect the company's focus on strengthening capacity and expertise.

Orders-on-hand for construction operations total NOK 11.4 million, which is the highest figure in Veidekke's history.

Sales of dwellings remained good in the first quarter. Activity is highest in Norway and sales have been generally good, in spite of a more selective market. In Sweden we see a steady increase in activity and all new projects are virtually sold out. Four residential development projects have been launched in Denmark. Sales so far have been very good and work is now being done to acquire new sites for development. All in all, Veidekke has 1,819 dwellings under construction in Scandinavia. Of those only six of the completed dwellings remain unsold.

"A special feature we see in central parts of the East of Norway and in parts of Sjælland in Denmark is the steep rise in the price of land. Where liquid resources are readily available, we see a steep increase in prices for attractive sites. This is a challenge when it comes to future costs for completed dwellings," Mr. Venold concludes.

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

For further information please contact:

Terje R. Venold, President & CEO,

tel. + 47 21 05 77 01, mobile + 47 905 82 323

Arne Giske, Executive Vice President, CFO,

tel. + 47 21 05 77 80, mobile +47 905 89 526

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

tel. + 47 21 05 77 22, mobile +47 917 43 856

Kai Krüger Henriksen, Executive Vice President Communications,

tel. + 47 21 05 77 04, mobile + 47 905 19 360