Estrategias de Comunicación y relacionamiento

The activities of the Group cover the whole spectrum of the construction industry and related services.

The Issuer divides its business in six categories (road construction, building construction, civil engineering/construction, railways, tunnels and bridge construction). The following provides an overview on the Issuer's business segments:

Road construction

Swietelsky started its business over 70 years ago as a road construction company. Today, Swietelsky is a company engaged in building roads, highways, airport landing strips, mountain path/roads, as well as parking lots and squares in countries such as Austria, Germany, Hungary, Czech Republic, Romania, Croatia, Serbia and Slovakia.

Since the beginning of its business, Swietelsky operated its own asphalt mixing plants. Today, the Company produces over two million tonnes of asphalt per year in more than 40 asphalt mixing plants covering all key markets in which the Company operates. This coverage allows the Company to be effective in recycling and re-using raw material. Asphalt is primarily used by the Issuer, and a small quantity is sold to third parties.

Road construction accounted for 28 per cent of the output volume of the Group in the business year 2006/2007. As in previous years, this was the largest segment of the Issuer's business.

Building construction

For several decades, Swietelsky has been involved in building construction projects of various sizes and complexity in Austria and abroad. These projects included the construction of office buildings, hotels, hospitals, shopping malls, plants and industrial buildings, apartments and single family houses. The Group is also involved in the renovation and remodelling thereof.

The Group and its specialized teams are also successful in promoting, planning, financing, and marketing real estate projects in Austria and abroad.

The Issuer's business segment of building construction (Building Construction) amounted to 24 per cent of the output volume of the Group in the business year 2006/2007 and together with civil engineering/construction (see below) was the second largest segment of its business.

Civil Engineering/Construction

In the Issuer's opinion the Group is among the leading companies of the industry in the field of civil engineering/construction (Civil Engineering/Construction) in the markets where it operates.

Over the years, the Group has earned experience in the construction of subways, power plants, highways and bridges requiring advanced construction techniques and methods. The Group is a well positioned market participant in various areas such as securing slopes, retaining walls, pilings, and anchoring required in construction of subway stations, roads or foundations of high rise buildings.

Furthermore, in the area of environmental protection and technology, the Group is active in the establishment and repair of waste disposal facilities, canal works, water purification plants and the building of dumps. Given the growing importance of environmental protection, this field of activities has developed into an important international component of the Group's business.

One of the Group's subsidiaries, Hoch-Tief-Bau Gesellschaft m.b.H. Imst, specializes in high altitude work in the Alps in Western Austria and the neighbouring regions of Italy, in particular in the area of avalanche control including the construction of avalanche galleries and barriers, the controlled inducement of avalanches with explosives, artificial snow production and the construction of cable-cars and lifts and shelters.

For decades, a further activity of the Group in Civil Engineering/Construction has been the building, repair and upgrade of sports grounds and leisure facilities, including ball game facilities, gyms, ice-curling alleys, golf courses, and swimming-pools. The Group has a specialized team for this business.

In large projects in highway and public building construction, Public Private Partnership (PPP) models are gaining increased importance. In such projects, the Group has to take care not only of the construction of the project but also its structuring, financing and revenues collection. The Group has therefore established specialized teams for these functions. Civil Engineering/Construction accounted to 24 per cent of the output volume of the Group in the business year 2006/2007 and this business segment ranked together with Building Construction as the second largest segment of the Group's business.

Railways

Swietelsky has a 70-year continuous experience in the railway business (Railways) and considers itself to be a leading company in Europe in this field in terms of market share. The Group has modern multi-tasking equipment which is capital intensive and operated by skilled technical personnel.

Activities in this sector entail:

 Project engineering and the new building and reconstruction of railway embankments

roads into rail is likely to result in the development of additional projects in this field. In the Issuer's opinion, the Group should be able to compete in these projects thanks to its modern equipment, which can complete up to 2,400 linear meters of finished rails per shift and upgrade/reconstruct existing tracks to meet the constantly higher standards required in this field.

 Track-bounded substructure rehabilitation, which is a prerequisite for a lasting, load-

carrying capacity of the tracks. The modern systems, equipment and techniques used by Swietelsky bring major advantages to its customers, including significant material saving by on-site recycling of the ballast on the multi-tasking equipment, high performances and, related to it, long distances completion within a short time.

 Tamping of tracks and turnouts: The Group uses up-to-date equipment for a fast and

efficient execution of these works to ensure the maintenance of existing railway tracks.

 Tram and subway construction: In the opinion of the Issuer, increasing traffic within

cities should give trams and subways an increasing importance. Swietelsky is active in this field directly and in cooperation with other contractors in the construction of tunnels and the building of rails.

 The building of slap track systems: The Group offers different ways to build firmer

track system which substitute the classical ballast and which are needed for high speed trains as well as trams and subways.

Illustrative examples of the Group's railway work in the year 2006 included the:

 refurbishing of more than 120 km of railways;

 construction and reconstruction of 160 km of new and existing tracks;

 tamping of more than 1,000 turnouts and 1,100 km of tracks; and

 construction and reconstruction of 270 pieces of new and existing turnouts

In addition, since 2005 Swietelsky has established itself with its subsidiary, the RTS Rail Transport Service GmbH, as a railway traffic enterprise in Austria and Germany and is in the position to transport rail construction equipment, optimize the logistics of its construction work, and avail its customers with various services in this field.

Railway activities accounted for 19 per cent of the output volume of the Group in 2006/07 and ranked as the fourth segment of its business. The railway construction is however the fastest growing business segment of the Group.

Tunnels

In the business segment of galleries and tunnels the Group operates through its subsidiary, Swietelsky Tunnelbau GmbH & Co KG, which is involved in the construction and the repair and maintenance of galleries and underground reservoirs. These include galleries for hydro- power projects, as well as tunnels for railway and tramway.

The Group's galleries and tunnels activities accounted for 3 per cent of the output volume in the business year 2006/2007 and ranked as the fifth largest segment of its business.

Bridge construction

Swietelsky has decades of experience in building and renovating bridges of all dimensions and in various levels of technical difficulties. The Group's activities in this field comprise the construction and maintenance of arch bridges, composite material bridges and pre-stressed concrete bridges.

Swietelsky's bridge building and maintenance activities accounted for about 2 per cent of the output volume of the Group in the business year 2006/2007 and ranked as the sixth largest segment of its business. Bridge construction is however gaining increased importance.