Proposed NOK 560 million early redemption of bonds and deletion of bond covenant

Stavanger, 22 October 2008: Norwegian Energy Company ASA (Noreco - OSE:NOR), Noreco has received pre-acceptances from the majority of the NOK 2,800 million bondholders to redeem NOK 560 million of bonds at par value and remove the covenant related to the market adjusted equity ratio in the loan agreement.
-          This is another important step in the company's strategy to reduce financial leverage and interest cost, says CEO Scott Kerr.
Noreco's proposal entails that bondholders of the Senior Secured Callable Bond Issue NOR01 and NOR02 get early redemption of 20% of outstanding bonds at par value and that the Market Adjusted Equity Ratio I in the Loan Agreement is removed. A bondholders meeting is called for to vote for the proposed changes to the Loan Agreement. The meeting will be held on 3 November, and the amount will be redeemed on 13 November 2008 upon a successful vote in the bondholders meeting.
-          We believe that the proposal is attractive for all stakeholders. Noreco has a very good cash position and positive cash flow, and has the strength to implement the early redemption, says CEO Scott Kerr.
Pareto Securities AS is financial advisor in connection with the transaction.
For further information, please contact:
Einar Gjelsvik, VP Investor Relations (+47 992 83 856)
Jan Nagell, CFO (+47 994 97 271)

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