The management of SKÅAB will continue to work with the company. A turnover of approximately SEK 20 million is expected in 2002.

The reason for focusing on the Swedish market is that BA Gjenvinning AS, owned 50/50 by Veidekke Gjenvinning A/S and AF Gruppen Industri A/S, has achieved a dominant position in the Norwegian market. In addition to the main facilities at the Grønmo refuse disposal site in Oslo, - which receives between 100,000 and 150,000 tonnes of heavy building waste per year - BA Gjenvinning has a network of refuse tips in most of the larger population centres in the Norway.

The concept is based on developing the value chain from environmentally friendly demolition via separation into fractions, to rational use through industrial production. The recycling rate is 98 percent.

SKÅAB has at its disposal an area of approximately 100 acres at an old landfill strategically situated just 20 minutes away from Stockholm. Today, stone, concrete, asphalt and dirt are being recycled. The aim is to increase the recycling volume considerably through active involvement in the demolition market. The plant has a capacity of 700,000 tonnes of masses.

"Through BA Gjenvinning we have been actively involved in the development of products that will increase future possibilities of quality conscious use of recycled concrete in roads, ditches, concrete constructions, etc. This also represents a sound basis for growth in the Swedish market, says Mr. Ole Skytterholm, Managing Director of Veidekke Gjenvinning A/S.

For further information, please contact:

Ole Skytterholm, Managing Director, Veidekke Gjenvinning A/S, phone +47 916 65 743

Robert Haugen, Managing Director, AF Gruppen Industri A/S, phone +47 951 20 097