Skanska Extends Motorway in London for SEK 1.3 Billion


STOCKHOLM, Sweden, March 9, 2005 (PRIMEZONE) -- Skanska has secured an assignment to plan, design and extend the M1 motorway to the northwest of London. The project, which is valued at a total of approximately SEK 3.2 billion (GBP 241 M) will be conducted in a joint venture with Balfour Beatty. Skanska's share of the design and construction contract amounts to SEK 1.3 billion (GBP 101 M) which will be included in order bookings for the first quarter of 2005. The customer is the UK Highways Agency.

The project comprises a 17-kilometer stretch of the M1 motorway situated to the northwest of London. The entire stretch shall be extended to four lanes on both the north and south-bound carriageways. Work also includes new interchanges as well as widening and, in some cases, new construction of a total of 18 bridges is also included in the assignment.

The Balfour Beatty Skanska joint venture will be responsible for the entire process, from planning and design to construction. The contract has been formulated in accordance with the Highways Agency's ``Early Contractor Involvement" program, which serves to pass on greater responsibility to contractors and involve them at the planning stage. The intention is to utilize contractors' knowledge and experience to optimize lifecycle costs and increase road safety.

The planning and design processes will commence immediately and construction is planned to begin towards the end of the year. The project is scheduled for completion at the end of 2008.

Within the framework of its evaluation program, Capability Assessment Toolkit (CAT), the Highways Agency has identified Skanska as one of the construction companies with the capacity to meet the Agency's requirements in the implementation of large-scale road projects.

Skanska is one of the UK's leading construction companies. The company reported annual sales totaling slightly more than SEK 11 billion in 2004, with about 3,500 employees. The company is active in building construction and infrastructure projects, including utilities for water, energy and telecommunication. Skanska is the largest construction company in the British program for Public Private Partnerships, PPP/PFI (Private Finance Initiative), having projects, completed or underway, totaling GBP 2 billion.

For further information please contact:

Tanya Barnes, Head of Communications, Skanska UK, tel +44 1923 423 905

Anna Wenner, Press Officer, Skanska AB, tel +46 8 753 88 99

This and previous releases can also be found at www.skanska.com

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