HNA/HNB - Mandatory notification of trade and disclosure of shareholding - Sale of 69,893,500 shares in Renewable Energy Corporation (Rec)

Hafslund ASA has sold 69,893,500 shares in Renewable Energy Corporation ASA ("REC"), representing approx 7.01 percent of the outstanding shares. The shares were sold at a price of NOK 3.40 per share. The transaction will give a loss in fourth quarter of approx NOK 129 million. Following completion of the sale, Hafslund will hold 19,143,531 shares in REC (1.92 percent of outstanding shares), and thus reduce its shareholding in REC below the 5 percent threshold set out in the Norwegian Securities Trading Act, Section 4-2.

The Hafslund Group's recent development has gone towards development of renewable energy within power production and heat as well as infrastructure for energy, while the group grows in power sales. The sale is a natural step to cultivate this strategy. In total, Hafslund have invested approximately NOK 2 billion in REC from the first investment was made and have realized a cash gain of approximately NOK 4.06 billion including this sale.

Tore Schiøtz, managing director of wholly-owned subsidiary Hafslund Venture II is a board member in REC.

Hafslund ASA

Oslo December 9, 2011

Contact person Hafslund ASA:
Finn Bjørn Ruyter, CFO, mobile +47 911 38 199