Aker Kvaerner strengthens its boiler business

Through the new acquisition, Aker Kvaerner expands its product portfolio in biofuel combustion technology in the group's business unit Kvaerner Power. Kvaerner Power delivers boiler plants for pulp and paper industry and power producers and it is currently known as a supplier of large-scale boiler worldwide.

"The majority ownership in Noviter supports Kvaerner Power's strategy to grow in the power generation segment," says Lennart Ohlsson, president of Kvaerner Power.

Pentti Koivikko, Chairman of the board in Noviter Oy, is confident that the resources of a major company like Aker Kvaerner will secure a strong growth in Scandinavia and in the Baltic countries. The two companies also share a strong confidence in the potential of expanding their businesses in Russia.

The agreement is subject to the approval of the competition authorities. The final agreement will be signed by the end of 2005. The parties have agreed not to disclose the value of the transaction.

For further information, please contact:
Torbjorn Andersen, Senior Vice President, Group Communications, Aker Kvaerner.
Tel: +47 67 51 3036 or +47 928 85 542.

Terttu Tuominen, Communications Manager, Kvaerner Power.
Tel: +358 20 141 2440 or +358 40 501 1415.
Investor relations:
Lasse Torkildsen, VP Investor Relations, Group Communications, Aker Kvaerner.
Tel: +47 911 37 194.
AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 (USD 4.5 billion) billion and employs approximately 22,000 people in more than 30 countries.
Kvaerner Power is a forerunner in large scale fluidized bed combustion for pulp and paper industry and power producers. Approximately 200 power boilers in operation testify to the expertise in fluidized bed technology with demanding fuels. Kvaerner Power is also the leading chemical recovery equipment supplier in the world with its 300 recovery boilers and 300 evaporation unit deliveries. Kvaerner Power has designed and manufactured the world's largest recovery units and biomass-fired fluidized bed boilers. Kvaerner Power with main operations in Finland, Sweden, USA and Brazil has annual revenues of approximately EUR 400 million and it employs 1,400 people worldwide.  
Noviter Oy is a private company, established in Turku, Finland in 1988. It delivers advanced boiler plants as turn-key deliveries to service the needs of district heating, industry and power production. In addition to the domestic markets in Finland, the company has presence in several export markets including Russia and other CIS countries as well as Baltic countries. In addition, Noviter Oy has experience of export markets in China and Korea. Noviter Oy is the parent company of Noviter Group, which includes own engineering, production and sales companies in Russia and Estonia.  Noviter Group's annual revenues for 2005 are expected to amount to EUR 40 million and it employs 60 people.
ICECAPITAL acted as the advisor of Noviter in this transaction.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com