Arbitration agreement

Stavanger, 22 March 2010: Norwegian Energy Company ASA (Noreco, OSE:NOR) and Norsk Tillitsmann have agreed to let an arbitration panel resolve a disagreement regarding the conversion price in Noreco's convertible bond. 

Norsk Tillitsmann is the trustee for Noreco's NOK 218.5 million convertible bond loan (ISIN NO 001036883.0), and is of the opinion that the conversion price should be adjusted from NOK 22.25 per share to NOK 16 per share as a result of a share issue in May 2009. This would increase the number of shares underlying the convertible bond by 3.8 million shares and represent a dilution of the existing shareholders by 1.6%. Noreco's opinion remains that that an adjustment of the conversion price is not warranted under the loan agreement and should not take place. 

The bond loan agreement states that disagreements between the parties shall be settled by the ordinary courts. However, in order to create clarity on the issue as soon as possible, Noreco and Norsk Tillitsmann have agreed that the matter shall be finally resolved by arbitration in accordance with the Norwegian Arbitration Act. Consequently, the parties will now proceed with the appointment of the arbitration panel. It is currently anticipated that a final judgment from the arbitration panel can be expected within six months. Further announcement will follow when a final judgment is rendered by the arbitration panel.

For further information, please contact: 

Einar Gjelsvik, VP Strategy & IR (+47 99 28 38 56)