Noreco: Tender offer

Stavanger, 30th June 2008:
Norwegian Energy Company ASA (“Noreco”) offers all holders of 6% Noreco convertible bonds to convert their bonds to shares whereby accepting bondholders will receive a fixed premium of 7.0% to par value plus accrued interest in cash. Noreco will ensure issuance and registration of the new shares as fast as practically possible after closing the offer. Noreco has received pre-acceptances from bondholders representing NOK162 million of the outstanding NOK 430 million in bonds.

This offer forms part of Noreco’s continued efforts to optimize it’s capital structure. Conversion of the bonds will increase Noreco’s market capitalization, reduce debt and reduce future interest costs. Furthermore, Noreco has experienced a strong increase in its shares’ liquidity since the private placement in April and conversion of the bonds is expected to further support this trend.

The offer period starts 30.06.2008 at 09.00 CET and ends 02.07.2008 at 16.00 CET.