Long term debt in SEK is exchanged to NOK

BWG Homes ASA had a substantial part of its long term debt to Nordea carried in Swedish kroner (SEK) under a multi currency facility entered into by its subsidiary BWG Homes AB. Of the long term debt in SEK amounting to SEK 859 million per 22 December 2009, an amount of SEK 834 million has now - due to the favourable development in NOK/SEK rate during 2009 - been converted to NOK debt.

The exchange has been made at an average rate of NOK/SEK 80.30. With this exchange BWG Homes has realised a reduction of its long term debt through the year 2009 of approx. NOK 90 million due to the SEK weakening from a level of 90.42 towards NOK at the start of 2009.

The exchange will not cause any gains or losses for the group, nor will it have any immediate cash flow effects. The exchange is made to establish the debt at a fixed level in Norwegian kroner. The debt will not fluctuate due to changes in the currency rate going forward.

At the same time all previously entered fixed interest rate contracts have been terminated. The termination of these contracts does not cause any gains or losses, nor does it have any immediate cash flow effects.

Contact information:

CFO Arnt Eriksen, tel: +47 23 24 60 37, +47 922 14 625.