More concentration on core business, a sharper focus on earnings from individual projects, and a strengthening of the Group's financial position has proved effective for Veidekke.

"We are reasonably satisfied with last year, seen as a whole," says President and CEO Terje R. Venold.

"What pleases us the most is the fact that Construction Norway has recovered much of its profitability in most of its operations. A great deal of effort has gone into improvement processes, and this is one of the most important reasons why the Group is able to present a pre-tax profit of NOK 220 million," says Mr. Venold.

Veidekke started the new year with considerably less debt, very healthy order books and an organisation that is well geared to meet a tighter market. At 31 December 2002, net interest-bearing liabilities were NOK 434 million compared with NOK 1,347 million a year before.

In view of Veidekke's strong financial position, good cash flow and a somewhat more restricted need for capital, the Board of Directors recommends distributing a dividend of NOK 3.50 per share for 2002. This is in line with the proposed change in dividend policy to give a pay-out ratio to shareholders of at least 50 per cent.

"The substantial reduction in the Group's net interest-bearing liabilities derives mainly from the sale of two business areas, plant hire and weather protection. However, more moderate investments and lower costs have also done their part. The sale of these two operations alone released capital amounting to about NOK 800 million," comments President and CEO Terje R. Venold.

Turnover for Veidekke's construction division in Denmark was on a par with last year, but its profit figure reflects the late start-up of projects throughout the year and losses in the technical installations segment. All in all, this gave a lower profit than the previous year. Orders-on-hand showed a positive trend throughout 2002 and a total increase of 31 per cent at the end of the year compared with 2001.

The overall results of Veidekke's operations in Sweden are still affected by weak earnings in construction activity in Stockholm. This is first and foremost due to necessary downward adjustments in the fourth quarter to final prognoses for contracts signed in the initial phase, but general start-up costs still play too large a part in the cost picture. On the contract side, Veidekke achieved a major breakthrough in 2002 when it was awarded a contract worth SEK 1,350 million in partnership with Vägverket Produktion for the construction of a 36 km stretch of motorway near Uppsala.

In the third quarter, Veidekke acquired operations in Skåne and now has operational bases in all of the most important growth areas in Sweden. 2002 was another good year for Veidekke's operations in Gothenburg, which report very satisfactory results.

The results of the Group's property development operations were in line with expectations, despite the decline in activity towards the end of the year due to a generally weaker property market. This was particularly noticeable in the market for non-residential property, but there were also signs of a downswing in sales of dwellings.

In the Group's Industry Division, asphalt operations achieved good results, although the asphalt volume in Norway was the lowest for many years. Veidekke Gjenvinning (recycling) increased its turnover and extended its market area in industrial waste. The Division's plant hire and weather protection operations were sold in 2002.

For further information, please contact:

Terje R. Venold, President & CEO,

tel. +47 21057701 or 90582323

Arne Giske, Vice President Corporate Finance,

tel. +47 21057780 or 90589526

Kai Krüger Henriksen, Vice President Communication,

tel. +47 21057704 or 90519360

Reference is also made to the enclosed accounting figures.