Oslo, Norway, 27 February 2004

As PhotoCure ASA has previously notified, 118,550 employee share options / subscription rights were conditionally allotted for 2003, each of them giving the right to acquire one new share in the company. The subscription rights could only be exercised if certain milestones and goals for 2004 were achieved. The Board of Directors' decided a final allotment of 30,998 of these employee share options.

Of these subscription rights, the Board of Directors' has allotted the following amount of subscription rights to the management:

Based on the above-mentioned allotment, employees in PhotoCure ASA have now exercised share options. The Board of Directors has therefore decided to increase the share capital with NOK 2,852 through the issue of 5,704 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 3 April 2003.

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

"The share capital of the company amounts to NOK 8,791,352 divided on 17,582,704 shares at NOK 0.50 each, registered by name and fully paid. All shares in the Company must be registered with the Norwegian Registry of Securities (VPS)."