THE FINNISH TRANSPORT AGENCY HAS ENTERED INTO A SERVICE AGREEMENT WITH TIEYHTIÖ VALTATIE 7 OY, A PROJECT COMPANY ESTABLISHED BY YIT, DESTIA, MERIDIAM AND ILMARINEN, FOR THE IMPLEMENTATION OF THE E18 KOSKENKYLÄ–KOTKA MOTORWAY

THE FINNISH TRANSPORT AGENCY HAS ENTERED INTO A SERVICE AGREEMENT WITH TIEYHTIÖ VALTATIE 7 OY, A PROJECT COMPANY ESTABLISHED BY YIT, DESTIA, MERIDIAM AND ILMARINEN,  FOR THE IMPLEMENTATION OF THE E18 KOSKENKYLÄ–KOTKA MOTORWAY

Tieyhtiö Valtatie 7 Oy, a project company established and owned by YIT, Destia, Meridiam Infastructure S.á.r.l and Ilmarinen Mutual Pension Insurance Company, has entered into a service agreement with the Finnish Transport Agency (FTA) on the implementation of the E18 Koskenkylä–Kotka motorway. Construction works on the road has begun, and is estimated to be completed in 2015. The total value of the contract is approximately EUR 623 million. The project will increase YIT’s order backlog by approximately EUR 190 million, and it will have a significant impact on employment for YIT in the next few years.

The project will be a public private partnership (PPP) based on internationally accepted precedents, in which the Finnish Transport Agency will procure the design, construction, maintenance and financing of the motorway from the project company, Tieyhtiö Valtatie 7 Oy. The project company has signed the construction and maintenance agreements, for the approximately 53-kilometre motorway, with a joint venture of YIT and Destia, with phase I opening to traffic in 2013 and full opening to traffic in 2014. The maintenance of the motorway will also be carried out by the joint venture until 2026.

The ownership structure of Tieyhtiö Valtatie 7 Oy is such that Meridiam Infrastructure Projects S.á.r.l holds 60 percent of the company and Ilmarinen Mutual Pension Insurance Company 19.90 percent. YIT and Destia each hold 10.05 percent of the company.

European Investment Bank, Nordic Investment Bank and Pohjola Bank Plc are the banks financing the project.

In addition to the Koskenkylä–Kotka motorway, the FTA chose Haminan Kehä, a joint venture established by YIT and Kesälahden Maansiirto Oy, to carry out the construction works for the first phase of the E18 Hamina Bypass Road (Vt7). The value of the construction contract is approximately EUR 120 million, and YIT's share of it amounts to EUR 60 million. The construction of the road will commence in December 2011, and it is estimated to be completed by 2015.

For additional information, please contact: 

Tero Kiviniemi, Head of Construction Services Finland, YIT Corporation, tel. +358 20 433 2017
Jaakko Kouvalainen, CEO, Tieyhtiö Valtatie 7 Oy, tel. +358 40 546 8073
Aapo Nikunen, Group Treasurer, YIT Corporation +358 20 043 32 307

YIT CORPORATION

Hanna-Maria Heikkinen
Vice President, Investor Relations

Distribution: NASDAQ OMX, principal media, www.yitgroup.com

YIT is a leading European service company in building systems, construction services and services for industry. We build, develop and maintain quality living environments in the Nordic countries, Central Europe, Russia and the Baltic countries. In 2010, YIT's turnover was EUR 3.8 billion. The Group has approximately 26,000 employees. YIT's shares are listed on NASDAQ OMX Helsinki. www.yitgroup.com.