HNA/HNB - Hafslund ASA reducing ownership in Renewable Energy Corporation ASA

Oslo, 11 May 2010: Hafslund ASA, through its wholly owned subsidiary Hafslund Venture AS, ("Hafslund") has today agreed to sell 26 million shares in Renewable Energy Corporation ASA ("REC"), representing approx 3.9 percent of the outstanding shares. The shares were sold at a price of NOK 17.75 per share. Following completion of the sale, Hafslund will hold 50,691,354 shares, representing approx 7.6 percent of the outstanding shares in REC and thus reduce its shareholding in REC below the 10 percent threshold set out in the Norwegian Securities Trading Act, Section 4-2.

In addition, Hafslund will today exercise its 38,345,677 subscription rights in the REC rights issue by subscribing for 38,345,677 new shares in REC. The proceeds from the sale of shares will finance the shares subscribed for in the rights issue. Following the completion of the rights issue, Hafslund will own approx 8.9 percent of shares and votes in REC.

Christian Berg, CEO of Hafslund, comments: "Hafslund will continue to be a long-term owner in REC and has a strong belief in the company going forward. The purpose of this transaction is to finance Hafslund's participation in the ongoing rights issue in REC".

DnB NOR Markets and SEB Enskilda AS acted as joint bookrunners in the transaction.

Contact person Hafslund ASA:

Christian Berg, CEO, mobile +47 917 46 910

Senior Vice President Venture in Hafslund, Tore Schiøtz, is a board member in REC.

This information is subject of the disclosure requirements acc. to §§4-1 and 4-2 of the Norwegian Securities Trading Act.