NCC Group Interim Report, January-March 2003

5/8/2003 6:21 AM EST

NCC-GROUP
Interim Report, January-March 2003

· Excluding items affecting comparability, a loss of SEK 459 M
(loss of 301) was reported after financial items.

· Additional cost-saving and adaptation measures are required,
due to an increasingly weak market.

Jan-March Jan-Dec
2003 2002 2002

Orders received, SEK M 10 044 9 613 43 098
Net sales, SEK M 8 631 8 675 45 165
Operating profit/loss, SEK M -391 96 1 820
excl. items affecting comparability1) -391 -205 1 519
Profit/loss after financial items, SEK M -459 0 1 306
excl. items affecting comparability1) -459 -301 1 005
Earnings per share, SEK -3,15 0,30 7,95
excl. items affecting comparability1) -3,15 -2,15 5,85

1) Items affecting comparability for 2002 pertain to a capital
gain of SEK 301 M from the sale of NVS.

Comments by the CEO:

"The gradually deteriorating market conditions and increased price
pressure that characterized the beginning of 2003 contributed to lower
first-quarter earnings. Results were also affected by the cautious
profit-recognition policy now being applied by NCC, which had a more
negative impact on earnings for the first quarter of 2003 compared with
the corresponding quarter of the preceding year.

"We are currently more pessimistic than previously regarding the market
trend. The downturn in the office market has been compounded and rent
levels are falling, due to the higher vacancy rates. Housing markets,
particularly in Stockholm and Oslo, are slackening, as a result of
reduced demand and falling housing prices. Our assessment is that the
Nordic construction market as a whole will develop less satisfactorily
in 2003 than we previously expected and that the recession in the
construction market will not bottom out until 2004, at the earliest.

"Against this background, we are already gradually implementing, or
planning, additional cutbacks or cost-cutting measures in most of the
Group's units. NCC Property Development's organization is currently
being restructured to align it with the weak market conditions expected
in the years ahead. Furthermore, we intend to divest the real estate
holdings outside the Nordic region as soon as possible.

"In parallel with these forceful adaptations within the Group, proactive
measures are also being made. With the aim of creating a platform for
breaking the negative trend of construction costs, we intend to exploit
the recession in order to implement changes in the construction process
and to conduct significant activities in the fields of partnering,
industrialized residential construction, purchasing and logistics."

Solna, May 8, 2003

Alf Göransson
President and Chief Executive Officer

This interim report is unaudited.

NCC's report on operations during the second quarter of 2003 will be
published on August 21, 2003.
If you have any questions, please contact: Björn Andersson, Chief
Financial Officer (Tel: +46-8-585 520 40, or +46-70-627 65 92); or
Annica Gerentz, Investor Relations Manager (Tel: +46-8-585 522 04, or
+46-70-398 42 09,  ).

A telephone conference will be held on May 8, between 4:00 and 4:30 p.m.
In order to participate in this conference, call +44 (0) 20 7162 0190
(English number) or +46 8 5052 0114 (Swedish number) , five to ten
minutes before the start of the conference and state "NCC." It will also
be possible to listen to a recorded version of the telephone conference
+44 (0) 20 8288 4459, access code 731752. The telephone conference can
also be followed on the Internet in real time at NCC Group's website
www.ncc.info. For those who intend to read the report in an electronic
format, click the following link:
http://www.genesysrichmedia.com/eventstream/ncc/030508.

The presentation material for the information meeting and telephone
conference will be downloadable from NCC's www.ncc.info website.