Skanska year-end report, 1998 results

STRONG GROWTH AND GREATER INTERNATIONALIZATION

• Order bookings rose by 36 percent, including 72 percent (63) outside Sweden
• Net sales rose by 29 percent to SEK 63.9 billion (49.6)
• Operating income rose to SEK 4.4 billion (0.8)
• Income after financial items totaled SEK 4.8 billion (10.1)
• Proposed dividend of SEK 12.00 (11.00) per share

"Our greater focus on construction-related services and project development, along with our widened geographic market base, is yielding results," says Claes Björk, President and CEO of Skanska, in a comment to the Group's 1998 accounts. "Developments during 1998 underscore the fact that Skanska is a growth company with large and increasing international presence and, on the whole, we had a positive trend of earnings in our business operations during 1998.

"The positive trend in our international construction business is encouraging and through the restructuring of our Swedish construction business we should be well positioned when the construction market in Sweden now begins to improve.

"Our project development operations have benefited from strong demand in the major metropolitan regions that we focus on. We have increased our investments in these operations and, in our judgment, the potential profitability of ongoing projects is very good. It is also important to realize the development gains and to maintain a high turnover in our property portfolio and in 1998 we sold several fully developed projects with good capital gains.

"The growth prospects in our core business of construction and project development are substantial and will require full management focus. The Board has therefore decided to start a process to divest our interests in the component companies in Skanska Europe. These companies have been restructured into focused groups and can each play important roles in their industries. In a managed process, we will seek new ownership structures for these companies over the coming years.

"The proposed dividend of SEK 12 per share for 1998 corresponds to an increase from last year by SEK 4 of the ordinary dividend in Skanska, taking into account also Drott's proposed dividend for 1998 of SEK 3 per share. Drott was distributed to our shareholders in 1998"

Danderyd, Sweden, February 25, 1999

Skanska AB
Corporate Communications

For further information, contact:
Anders Nyrén, EVP Finance, telephone +46 8-753 8632
Cecilia Schön, SVP, Corporate Communications, +46 8-753 8799
Staffan Schéle, Investor Relations, +46 8-753 8272
Erik von Hofsten, Investor Relations, +46 8-753 8682

Enclosed: Skanska Group, Year-End Report, 1998 Results