Profit for the second quarter was NOK 175 million and it, combined with a good first quarter, contributed to a strong first-half for Veidekke. The Property Division made the greatest profit progress but the results for construction and industry activities are also good.

"There is no doubt that operations in Norway continued to make the greatest progress but it is satisfying to see that our activities in Denmark and Sweden also show a positive development," says President and CEO, Terje R. Venold. "We are also very pleased to see that orders-on-hand have now passed NOK 10 billion. With our strong financial position we feel well-equipped for the road ahead," adds President and CEO, Venold.

Veidekke's total turnover for the first half-year was just under NOK 7 billion with a pre-tax profit of NOK 214 million. The Group's total orders-on-hand are NOK 10.5 billion, which represents an increase of 15 % from the beginning of the year.

A good housing market is certainly the most important cause of the progress within property development. With the upstart of property development in Denmark, Veidekke is now a major player in this market in all three Scandinavian countries. In total, by the end of the first half-year, Veidekke has 2 150 dwellings under construction, of which 1 950 are sold. We anticipate some flattening-out in the price level of dwellings in the central region of Norway. In Sweden and Denmark we expect the markets to remain steady.

Market prospects also look relatively good in all three Scandinavian countries on the construction side.

"Our most important challenge ahead is to ensure that we do not begin to rest on our laurels," says President and CEO, Venold. "By involving our employees we will continue working to increase productivity, improve operations and quality in the execution of each individual project, and maintain focus on risk management. In this way, we will strengthen and further develop relations with our customers, and create safe and long-term working conditions for our employees," concludes Venold.

Reference is also made to the Board of Directors' report for the second quarter, 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, ExecutiveVice 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, Executive Vice President, Communication,

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