Payout of dividends and buy-back of shares

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Dampskibsselskabet NORDEN A/S

                                                                                                                                                                           Announcement no. 27

                                                                                                                                                                                   15 December 2010

NORDEN will pay out DKK 505 million (approximately USD 90 million) to the shareholders through payment of dividends and buy-back of shares 

NORDEN's Board of Directors will propose to the annual general meeting on 11 April 2011 that a dividend of DKK 8 per share will be paid out for the financial year 2010, corresponding to a total dividend of DKK 335 million (approximately USD 60 million at the present USD/DKK rate) and a dividend yield of 4.1% based on yesterday's share price (14 December 2010).  

Furthermore, the Board of Directors has decided to initiate a buy-back of shares at a value of DKK 170 million (approximately USD 30 million at the present USD/DKK exchange rate) on the terms stated below.

The payout of a total of DKK 505 million (approximately USD 90 million) is in line with NORDEN's objective to provide reasonable, long-term returns to the shareholders through share price increases, dividends and occasional buy-back of shares. After the payout, NORDEN will still have the financial strength to take advantage of attractive investment opportunities in Dry Cargo and Tankers. Thus, NORDEN has bought 6 modern product tankers and contracted 4 dry cargo newbuildings at a total price of approximately USD 275 million, and especially the product tanker market is expected to present additional investment opportunities in the short term. 

If the dividend is agreed upon and the buy-back of shares is carried out as planned, NORDEN will have paid out approximately DKK 3.5 billion in total to the shareholders for the financial years 2006-2010: Approximately DKK 2.9 billion in dividend (excluding treasury shares) and approximately DKK 600 million in buy-back of shares.

Prior to the buy-back of shares, NORDEN owns 2,713,371 treasury shares, corresponding to 6.1% of the share capital.

The buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors at the annual general meeting on 22 April 2010, allowing NORDEN to acquire treasury shares with a nominal value not exceeding 10% of the share capital at the market price applicable at the time of acquisition with a deviation not exceeding 10%.

The buy-back programme will be structured in accordance with the provisions of the Commission's Regulation no. 2273/2003 (the "Safe Harbour" method) which ensure that the Company is protected against violation of the insider legislation during the buy-back.

The buy-back is expected to be initiated later this month or in the beginning of January. NORDEN will announce further information about the programme in this connection.

Kind regards,

Dampskibsselskabet NORDEN A/S

Carsten Mortensen

President & CEO

Contact at tel. +45 3315 0451: Senior Vice President Martin Badsted.