Sognekraft has today entered into an agreement with Veidekke to construct the
Offerdal hydropower plant in Årdal. The target price contract is valued at
approximately NOK 525 million excluding VAT.

"Veidekke has a proud history in the construction of hydropower plants. These
projects are often highly complex and long-term, and in the case of Offerdal,
the process began with agreements with landowners back in the late 1990s.
Sognekraft entered the project a few years later and acquired the majority of it
from Veidekke. We are now very pleased that the project is finally being
realised and that we can continue our strong collaboration with Sognekraft
following the construction of the Feios hydropower plant, which has just been
completed," says Neal Nordahl, Director at Veidekke Infrastructure.

The Offerdal hydropower plant will generate approximately 100 GWh of new
renewable energy annually, equivalent to the electricity consumption of around
6,000 households. The plant will feature a daily storage reservoir (tunnel
reservoir) inside the mountain, based on the same principle used at the Feios
hydropower plant. This innovative and flexible solution, developed jointly by
Veidekke and Sognekraft, enables water storage and power generation when demand
is at its highest.

"We are very pleased that, together with Veidekke, we can now initiate this
development. At a time when the demand for new, flexible hydropower is
increasing rapidly, this project will make an important contribution to the
power balance while also creating value both locally and regionally," says Terje
Bakke Nævdal, CEO of Sognekraft.

The Offerdal development will comprise two power plants within the same project:
one underground facility housing two turbines, and one surface installation.
Both plants will have a head of approximately 400 metres. The upper reservoir
will have a capacity of 15,000 cubic metres and the lower reservoir 61,000 cubic
metres, while the underground tunnel system will be nearly 6.5 kilometres in
length.

Construction works will commence after Easter, with planned start of power
generation towards the end of 2028. Read more about the project
here (https://www.sognekraft.no/fleiresaker/offerdalkraftverk-pressemelding).

The contract will be included in Veidekke's order backlog for the first quarter
of 2026.

For further information, please contact:

Director Neal Nordahl, Veidekke Anlegg, tel. +47 90 92 44 64,
neal.nordahl@veidekke.no

Communications Manager Helge Dieset, Veidekke, tel. +47 90 55 33 22,
helge.dieset@veidekke.no

Veidekke's press photos (https://veidekke.fotoware.cloud/fotoweb/archives/5028
-Pressebilder-Veidekke/)
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Veidekke (http://www.veidekke.com/) is one of Scandinavia's largest contractors.
In addition to undertaking all types of building and civil engineering
assignments, the group also maintains roads and produces asphalt and aggregates.
Veidekke emphasises stakeholder involvement and local experience. Its annual
turnover is approximately NOK 43 billion, and half of its 8,000 employees own
shares in the company. Veidekke is listed on the Oslo Stock Exchange and has
posted a profit every year since its inception in 1936.