Cramo Plc Investor News 28 October 2010, at 6.00 pm Finnish time (GMT+2) Cramo and Peab strengthen co-operation by signing an outsourcing agreement Cramo and Peab have signed important agreements to strengthen co-operation between the companies. Cramo Finland Oy, the wholly owned subsidiary of Cramo Plc, will acquire the majority of Lambertsson Oy's rental fleet and has signed exclusive five-year rental agreements with Peab in Finland. Lambertsson Oy is the rental operation of Peab in the Finnish market. The signed agreements include equipment rental, modular space rental and rental-related services. At the same time, Peab in Sweden will acquire Cramo Entreprenadmaskiner business from Cramo, which is Cramo's operation for providing heavy rental equipment with drivers in the Swedish market. Peab and Cramo have simultaneously extended their existing rental agreements in the Swedish market for another five-year period. Lambertsson in Finland Lambertsson Oy has rental operations in three main locations in Finland: Nurmijärvi, Ylöjärvi and Turku. The fleet range is similar to Cramo's and the customers are, apart from Peab, other companies in the construction industry. According to the agreement Cramo takes over the entire rental operation including all 15 operative employees, with the exception of Lambertsson Oy's tower crane, hoist and mast climber business. “Peab is a major customer and partner to Cramo Group in several markets” says Mr Tatu Hauhio, Senior Vice President and head of Cramo Finland. “In Finland we have a long and strong relationship which is now further deepened through this agreement. Long-term outsourcing arrangements like this are built on mutual trust and the conviction that it is beneficial for the growth and future development of both parties.” “This is our fourth substantial outsourcing agreement during the past half year”, says Cramo Group's CEO Mr Vesa Koivula, “which is obviously positive news for the rental industry and for Cramo in particular”. Cramo Entreprenadmaskiner Cramo Entreprenadmaskiner is a rental-related service business within Cramo's Swedish organisation, offering heavy service machines (10-20 tons) with professional drivers for large and medium-sized construction companies. The company has its own fleet of approximately 35 wheel loaders, excavators and telehandlers, but also serves as a broker for independent subcontractors. The operation has 34 employees and an annual turnover close to EUR 15 million. “Cramo Entreprenadmaskiner is a stable and profitable business”, says Mr Erik Bengtsson, Senior Vice President and head of Cramo Sweden. “From our perspective the rationale is that Peab can offer the company good possibilities to grow more rapidly than hitherto in Cramo - internally within Peab as well as externally. At the same time we can develop our relationship with Peab even further, and free up resources from this non-core service operation to our core rental business.” CRAMO PLC Vesa Koivula President and CEO Further information Tatu Hauhio, Managing Director, Cramo Finland, tel: +358 40 570 1344 Erik Bengtsson, Managing Director, Cramo Sweden, tel: +46 70 302 5220 Martti Ala-Härkönen, CFO, Cramo Plc, tel: +358 40 737 6633 Distribution NASDAQ OMX Helsinki Ltd. Major media www.cramo.com Cramo is a service company specialising in construction machinery and equipment rental and rental-related services, as well as the rental and sale of modular space. As one of the industry's leading service providers in the Nordic countries and Central and Eastern Europe, Cramo operates in eleven countries with 284 depots. With a group staff of 2.000, Cramo's consolidated sales for 2009 was EUR 450 million and Cramo shares are listed on the NASDAQ OMX Helsinki Ltd. For further information, please visit www.cramo.com.