Financing secured for Walsall Hospital PFI Healthcare scheme - Skanska invests GBP 8.2 million, approximately SEK 110 million, and receives construction contract worth GBP 174 million, corresponding SEK 2.4 billion

Financing secured for Walsall Hospital PFI Healthcare scheme - Skanska invests
GBP 8.2 million, approximately SEK 110 million, and receives construction
contract worth GBP 174 million, corresponding SEK 2.4 billion

Skanska has reached financial close for the delivery of a 33-year PFI scheme to
design, build, finance and operate a major healthcare development - Manor
Hospital for the Walsall Hospitals NHS Trust in Walsall, UK.

For Skanska, this means: 

- receiving a construction contract worth around GBP 174 million,  about SEK 2.4
billion, which is to be included in order bookings for the construction
operation for the fourth quarter of 2007
- receiving a facilities management contract valued at around GBP 2.3 million,
about SEK 30 million, per year for the entire period. GBP 4.6 million, SEK 60
million, hereof will be included in order bookings for the fourth quarter
- investing GBP 8.2 million, approximately SEK 110 million, corresponding to a
50 percent interest in the project company co-owned with Innisfree which also
holds a 50 percent share of the project company. 

The signed financial close provides for a net cash flow for the Skanska Group of
about SEK 345 million in the fourth quarter. This relates largely to advance
works and development costs incurred to date. An earnings effect of
approximately SEK 40 million arises on the portion of development costs that
were previously expensed rather than capitalized. The main portion of the cash
flow and the earnings effect is reported in the UK construction operations.  

The redevelopment of Manor Hospital will include 40,000 square meter of new
accommodation, including a modular ward block containing 136 beds. This unit
will complement the existing facilities, some of which are to be refurbished, to
provide a total of 558 inpatient beds at completion of the scheme.  

Also, the hospital project will include the extensive rejuvenation of the
existing facilities to create a single unified hospital. The current, outdated
buildings will be replaced; a new state-of-the-art Diagnostic and Treatment
Centre will be created along with a new Women, Children and Young Peoples Centre
linked to the existing Maternity Unit. A new Multi-Professional Education Centre
will provide training facilities integrated within the mainstream hospital
environment. 

Preparatory works have been completed and main construction will begin this
month with the completion of all new accommodation set for the autumn of 2010
and full completion of the scheme in the summer of 2011. Throughout the phased
construction period, all existing healthcare facilities will remain fully
operational.

Skanska is a leading Private Public Partnership (PPP) company in the United
Kingdom. Work on the largest project to date - development of the Barts and The
London hospitals, for which the construction contract amount to approximately
GBP 1 billion - is under way. Please, also see
www.skanska.com/id



For further information please contact:

Tanya Barnes, Head of Communications, Skanska UK,
tel: +44 1923 423 905 
Peter Gimbe, Press Officer, Skanska AB, tel +46 8 753 88 38
Direct line for media: +46 8 753 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 construction groups with expertise in
construction, development of commercial and residential projects and
public-private partnerships. The Group currently has 56,000 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
2006 totaled SEK 126 billion.