Operating income for 2004 was NOK 12,934 million as against NOK 11,461 million in 2003, giving an operating profit of NOK 322.8 million compared with NOK 190.5 million a year earlier. Pre-tax profit was NOK 342.0 million, as against NOK 168.1 million in 2003. Earnings per share were NOK 8.51 as against NOK 3.75 in 2003. Cash flow per share was NOK 17.34 as against NOK 14.17 in 2003. The company's equity ratio was 27.3 per cent as against 25.9 per cent in 2003. At the end of the year, Veidekke's orders-on-hand totalled NOK 9,177 million, compared with NOK 8,120 million at the end of 2003.

Veidekke's board of directors will propose a dividend of NOK 6.00 per share for the financial year 2004.

The level of activity in the Group was generally high throughout 2004 and the order situation at the end of the year indicates that this will also be the case in 2005.

"The headway we have made in Norway is naturally the most gratifying, particularly since this is not just the result of a good market, but just as much the result of organisational improvements," says Veidekke's President and CEO. "If we look at our Norwegian operations as a whole, they achieved a profit before tax of NOK 399 million and a profit margin of 4.3 per cent." He points out that focus on customers and employee involvement are two key factors in Veidekke's profit performance and he emphasises the importance Veidekke attaches to developing its own employees, both office staff and craftsmen. "With brighter market prospects and healthy order books, there is good reason for continued optimism," he says.

"Recent results for our Danish operations, Hoffmann, show that the somewhat disappointing trend in the first half of the year has now been reversed. The necessary organisational adjustments have been made and the order situation is strong," says Mr. Venold.

In Sweden, however, the situation is more mixed. In property development, Veidekke Bostad AB posted a profit of NOK 12.4 million and volume-wise they have laid a sound basis for good housing sales in the years ahead. Similarly, construction operations in Gothenburg show a profit and a good order situation. The figures for operations in Skåne have picked up, while construction operations in Stockholm give a very disappointing result. Here, the weak figures are due first and foremost to a substantial write-down of a construction project. However, organisational adjustments and changes in the local management have also been necessary.

"We are still in the process of building up a quality organisation in Sweden and this is bound to take some time," he says. "Building a position in a well-structured market like Sweden takes both time and money. But Sweden is our largest market, and it is a market with considerable potential. So we want to stay there and grow," he adds.

For Veidekke's industry division, 2004 was a year of improvement in asphalt, a slight decline in recycling and a selldown of shares in the Ramirent plant hire company. Following an agreement with the minority shareholders in Kolo Veidekke, Veidekke will now be the sole owner of the asphalt company, and with expectations of more growth in volume growth, Veidekke is well-positioned in the market.

Another area where Veidekke shows considerable progress is health, safety and environment. The sickness absence and injury rates are our main standards in this area, and in both cases we can report considerable improvements compared with 2003. Veidekke's operations in Norway have reached an important milestone, in that the injury rate (number of injuries per million hours worked) is down to a level of 5. Absence among our craftsmen in Norway has fallen from 8.4 to 6.4 per cent and the average figure for all employees in Norway is now 4.9 per cent.

Reference is also made to the Board of Directors' report for the 4th quarter 2004, which is enclosed with this press release.

If you have any questions, please contact:

Terje R. Venold, President and CEO,

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

Arne Giske, Senior Vice President & CFO,

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

Jørgen G. Michelet, Director, Finance and Investor Relations,

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

Kai Krüger Henriksen, Senior Vice President, Communication,

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