Employee shares and share options

Employees in PhotoCure ASA have exercised share options granted to them in 1997 and the Board of Directors therefore has decided to increase the share capital with NOK 20,000 through the issue of 40,000 shares at NOK 0.50 each. The share capital increase is based on an authorisation granted to the Board of Directors at the Annual General Meeting held on March 23, 2000. The subscription price for the shares is NOK 7.55 and NOK 7.60.

The Articles of Association for PhotoCure ASA are changed following the share capital increase and § 4 is now as follows:

“The share capital of the company amounts to NOK 8,545,000 divided on 17,090,000 shares at NOK 0.50 each, registered by name and fully paid in. All shares in the Company shall be registered with the Norwegian Registry of Securities (VPS).”

As part of PhotoCure’s share option plan, the Board of Directors has decided to grant a total of 65,000 share options to new employees in PhotoCure ASA. The exercise price for the share options equals the market price of the shares and is between 126 and NOK 129 per share. The share options can be exercised until the end of the first half of 2005, but only one third of the shares can be exercised in 2003, the next third in 2004 and the rest in 2005.

Oslo 26th of October 2000