Peab Builds for Fosema in Malmö

Regulatory News:

Peab (STO:PEABB) has signed an agreement with Victoria Park AB on the acquisition of an unbuilt land in Limhamn, Malmö. Peab will then carry out the construction of a care building for Förenade Care, including medical centre and the elderly living. United Care has signed a 15-year lease.

Access of the property will be on January 30, 2009. Construction will begin immediately and is expected to be completed in spring 2010. Contract sum estimated at around 70 million.

Peab has signed contract with Fosema, which after completion of construction, acquires the property. Access is expected to June, 2010.

"This project is a good example of how Peab project development concept works, where Peab together with their customer, develops and builds and has agreed with customer that he will acquire the project, when it is completed, says Peab deputy MD Jan Johansson.

"Fosema is very pleased to present this business for the elderly in an attractive region, and especially that we managed to find a successful cooperation with Peab under the prevailing economic situation and financial market. Fosema be long term, owning and managing properties in the segment for senior living and retirement and health care. This project, where we work with Peab, is a good example of how we want to work in the future, "says Fosemas CEO, Henry Fors in a comment.

Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 3.30 p.m. on 30 January 2009.

Previous press releases from Peab are available at www.peab.com

Peab is one of the leading construction and civil engineering companies in the Nordic countries with a net sale exceeding SEK 30 billion and approximately 12,000 employees. The Group’s subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on the Nordic Exchange. The registered office of the Group is at Förslöv, Skåne in south of Sweden.

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