YIT - Company Announcement

Consortium between YIT, VR Track and Pöyry selected to implement the light rail project in Tampere, Finland

Helsinki, Finland, 2015-06-22 14:00 CEST (GLOBE NEWSWIRE) -- YIT CORPORATION   
                                STOCK EXCHANGE RELEASE                         
               JUNE 22, 2015 AT 3:00 P.M. 



Consortium between YIT, VR Track and Pöyry selected to implement the light rail
project in Tampere, Finland 

The City of Tampere has selected Tralli, a consortium comprising of YIT, VR
Track and Pöyry, to carry out the light rail project in Tampere, Finland. The
project is to be carried out employing the alliance model, whereby the client,
engineers and contractors work jointly in the execution. The cost estimate for
the project is approximately EUR 250 million. 

The development phase of the project will begin in July 2015. During the
development phase, the plans for the project will be developed and the target
cost level established. After the development phase, separate decisions will be
made on the start of the implementation phase during which YIT and VR Track
will be in charge of the construction. If the implementation phase is started,
the light rail system is to be completed in two parts, in 2019 and 2023. For
YIT, most of the revenue recognition will take place during the implementation
phase in line with the progress in construction. The value of the
implementation phase for YIT would be approximately EUR 100 million, and it
would be recognised in YIT's order backlog at the beginning of the
implementation phase, likely in autumn 2016. 

The light rail system will be constructed in the busiest part of the Tampere
public transport system, from the city centre to Sampola. In Sampola, the line
forks in two, with one line leading to the University of Tampere and the other
to the Hervanta area. The 23.5-kilometre line covered by the project will
contain 23 to 25 stops. 

The combined strength of YIT, VR Track and Pöyry is their extensive experience
in various challenging transportation projects. In the project, the core of the
approach consists of infrastructure modelling in which all of the companies
have solid experience. 

“The light rail system is one of the most significant infrastructure projects
in Finland, providing a great opportunity for the entire consortium. All
parties involved have prior experience in working with the alliance model, so
we have good conditions for building a successful project,” states Harri
Lukkarinen, Vice President of Construction at VR Track Oy. 

“The expertise areas of the parties in the alliance support each other, which
creates an excellent framework for implementing the project successfully and in
tight co-operation with stakeholder groups. The light rail project is exciting
and very significant for YIT, and it supports our objective of participating
intensely in the development of new operating models for the field of
infrastructure, while also allowing us to play a part in developing and
building the Tampere region,” says Jarkko Salmenoja, Vice President at YIT. 

“In an alliance project, all parties have a vested interest in ensuring the
success of the project. Pöyry is fully committed to providing the project with
its best infrastructure engineering expertise,” states Mikko Inkala, President
of Pöyry's Infrastructure Business Unit. 

The purchase decision issued by the City of Tampere on June 22 will enter into
force three weeks after the date of the decision, after which the contract for
the development phase may be signed. 

For further information, please contact:

Sanna Kaje, Vice President, Investor Relations, YIT Corporation, tel. +358 50
390 6750, sanna.kaje@yit.fi 
Jarkko Salmenoja, Head of Unit, YIT Construction Ltd, tel. +358 40 356 7057,
jarkko.salmenoja@yit.fi 



YIT CORPORATION



Sanna Kaje
Vice President, Investor Relations



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

YIT is a construction industry leader. We create better living environments in
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100 years of experience have secured us a strong market position: we are the
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