Ballast Nedam Trading Update - Third Quarter 2009

NIEUWEGEIN, The Netherlands -

- Slight Fall in Order Book - to EUR 1.8 Billion

- 2009 Forecast Under Greater Pressure: Operating Result of Approximately EUR 15 Million to EUR 20 Million

Situation in the third quarter of 2009

Compared to the first six months of this year, the markets for property and infrastructure showed no improvement during the third quarter.

The order book fell from EUR 1,910 million in mid-year to EUR 1,830 million. Nevertheless, the value of the order book is still 10% higher than it was at the end of 2008. The relatively high level of the order book particularly reflects large, long-term projects such as the Ministry of Justice and the Ministry of the Interior and Kingdom Relations in The Hague, various PPP projects such as the Kromhout Barracks in Utrecht, and the construction of the multi-fuel power plant for Nuon, at the port of Eemshaven in the province of Groningen, which recommenced in the third quarter. In the fourth quarter, the civil part of the major, long-term A2 Maastricht project will be entered into the order book. In contrast, the order book for the regional companies declined, in line with general market developments.

Third quarter results fell short of our expectations. The construction companies’ results in particular (both the regional construction companies and the major projects) were more adversely affected than had been anticipated. The Infrastructure division’s performance was in line with expectations.

In the third quarter, the net financing position fell to EUR 159 million (a drop of EUR 14 million) due to an increase in PPP loans. Net cash, which was included in the net financing position, increased by EUR 2 million to EUR 18 million.

Forecast for 2009 - results under greater pressure

In the third quarter, results were even more adversely affected because the results of the Construction and Development division fell behind. Among other things, this was due to an unfavourable settlement of a claim on a large project and further delay in the sale of real estate. In view of this, the Board of Management expects an operating result of approximately EUR 15 million to EUR 20 million for 2009, with a lower revenue than in 2008.

This forecast makes no allowance for a possible provision for a fine of EUR 9 million imposed by the UK competition authority (Office of Fair Trading) nor for the potential beneficial outcome of proceedings against a former director, who was held liable for approximately EUR 20 million in an interlocutory decision.

The half-yearly report was still based on a forecast result of approximately EUR 25 million, with a range of EUR 20 million to EUR 26 million.

Source: Ballast Nedam NV

Note for the editorial staff: Further details can be obtained from: Ballast Nedam N.V., Adrie van Kessel, telephone +31(0)30-285-41-61 / +31(0)6-22-45-71-85