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Temporary halt in chitin operation due to temporary redundancy at Nergård Reker AS

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(Lysaker, 14. March 2007) Navamedic ASA has been informed Nergård Reker AS has sent notice of temporary redundancy to all its personnel due to possible halt in Nergård Reker's operation from 28 March. The operation is expected to restart after easter.



The company has earlier expected start-up of commercial production in ChitiNor AS during Q1 2007. The chitin plant is completed and test production is ongoing. The company now expects that commercial production in ChitiNor AS will start during April.



As a result of the arisen situation, ChitiNor AS has submitted a notice of temporary redundancy to its two employees, starting from 29. March.




As announced earlier, the company has entered into a Letter of Intent (LOI) for the sale of the first full-year production of chitin to Lytone of Taiwan. The LOI has a value of approximately NOK 7 million. The delay in start of commercial operation results in a corresponding delay in revenues from chitin sales.



For further information, please contact:



Øyvind W. Brekke, CEO Navamedic ASA
E-mail: oyvind.brekke@navamedic.com
Office: +47 67 11 25 40
Mobile: +47 91 19 81 64



Bernt-Olav Røttingsnes, CFO/IRO Navamedic ASA
E-mail: bor@navamedic.com
Office: +47 67 11 25 44
Mobile: +47 91 34 70 21

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