Skanska reaches financial close for M25, London's Orbital Road

Skanska reaches financial close for M25, London's Orbital Road 

Skanska, as part of Connect Plus, has reached financial close for the widening
of the M25 orbital road around London. The project is being carried out as a
Public Private Partnership (PPP) and Skanska is part of the team responsible for
the Design, Build, Finance and Operate (DBFO). This means that:


- Skanska receives a construction contract amounting to about GBP 500 M, about
SEK 6 billion, which will be included in order bookings for the second quarter. 
- Skanska will invest GBP 80 M, about SEK 965 M, throughout the construction
period, corresponding to a 40-percent interest in Connect Plus

Connect Plus, in addition to Skanska Infrastructure Development with 40 percent
interest, includes Balfour Beatty with 40 percent as well as Atkins and Egis,
each with a 10-percent interest. The design-build project is being carried out
by Skanska UK and Balfour Beatty in a 50/50 joint venture.

“We now have the financing in place, despite the prevailing economic situation.
This is highly positive for us for a number of reasons,” says Johan Karlström,
President and CEO of Skanska. “It makes new investment for our Infrastructure
Development operations possible as well as securing a major construction
assignment for our UK construction operations. Moreover, Skanska is breaking new
ground for transport infrastructure in the PPP segment in the UK, where to date
we have been successful with regard to hospitals and schools.” 

Skanska, as part of Connect Plus, will be responsible for the design,
construction, financing and operation and maintenance of the M25 motorway for 30
years for the British Highways Agency. The operation and maintenance undertaking
will be carried out by joint a venture between Balfour Beatty, Atkins and Egis.

The project comprises renovation and widening of two sections in the North East
and North West quadrants of the M25 north of London. A total of 63 km is being
widened from three to four lanes in each direction. The widening is between
junctions 16 to 23 and 27 to 30. The assignment covers design and construction
of the roadways, including on- and off-ramps and related undertakings such as
motorway control systems, drainage and landscaping. 

The project also includes complete refurbishment of the 1.2 km long Hatfield
Tunnel on the access road A1(M). 

The main construction work will begin this summer and is scheduled to be fully
completed in July 2012.

The M25, also known as the London Orbital Motorway, connects the entire Greater
London and is one of the world's busiest motorways. 

Skanska Infrastructure Development is a leader in the global Public Private
Partnerships (PPP) market. The business unit invests in, develops and operates
roads, hospitals, schools, power plants and other social infrastructure in
partnership with the public sector.
 
Skanska UK reported revenues of SEK 17.9 billion in 2008, with about 4,900
employees. The company is active in building and civil construction, utilities
and building services. Skanska is also a leader in the British program for
private public partnerships, PFI (Private Finance Initiative).


For further information please contact:

Tanya Barnes, Head of Communications, Skanska UK,
tel +44 1923 423 905 
Hans Biörck, Executive Vice President and CFO, Skanska AB, 
tel +46 10 448 88 32
Peter Gimbe, Press Officer, Skanska AB, tel +46 10 448 88 38
Direct line for media: tel +46 10 448 88 99

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

Skanska AB may be required to disclose the information provided herein pursuant
to the Securities Markets Act.

Skanska is one of the world's leading project development and construction
groups with expertise in construction, development of commercial and residential
projects and public-private partnerships. The Group currently has 55,000
employees in selected home markets in Europe, in the US and Latin America.
Headquartered in Stockholm, Sweden and listed on the Stockholm Stock Exchange,
Skanska's sales in 2008 totaled SEK 144 billion.