"We are glad to be able to report that our traditional construction operations are going well, particularly in Norway and Denmark. Here, the profit margin has improved since last year and our volume of orders remains high," says Veidekke's President and CEO Terje R. Venold.

"However, our profit has been affected by our decision to wind up steel construction operations in Skåne. Byggsmederna AB was part of the activities associated with the operations Veidekke acquired in Skåne a year ago. Since steel constructions are not part of our core business and these operations have run at a loss since the beginning of the year, we have elected to withdraw rather than invest further resources in turning the company around," says Mr. Venold.

In Veidekke's Industry Division, asphalt operations have achieved an increase in volume compared with last year, but profits are affected by heavy pressure on prices. Operation and maintenance of public roads is a new segment for contractors this year, and Veidekke has been awarded several contracts. Work under these contracts did not get started until September and has therefore had little impact on the quarterly figures.

Due to the uncertainty in the economy and the rising unemployment rate, sales of dwellings were slow in the Property Division prior to the summer holidays. This situation has improved somewhat in the course of the autumn, particularly as regards medium-priced housing. New housing projects were started up in Oslo, Akershus and Trondheim in the third quarter and the prospects for 2004 seem brighter. Veidekke's Property Division is also active in the housing sector in Stockholm and Skåne where sales are acceptable, considering the continuing uncertainty in the economy.

Reference is also made to the Board of Directors' report for the third quarter 2003, which is enclosed with this press release.

For further information, please contact:

Terje R. Venold, President and CEO, 

tel. +47 21 05 77 01 / 905 82 323

Arne Giske, Senior Vice President & CFO,

tel. +47 21 05 77 80 / 905 89 526

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

tel. + 47 21 05 77 22 / 917 43 856

Kai Krüger Henriksen, Senior Vice President, Communication,

tel. +47 21 05 77 04 / 905 19 360