Oslo, Norway, 24 August 2005

As PhotoCure ASA has previously notified, 30,998 employee share options / subscription rights were allotted for 2003, each of them giving the right to acquire one new share in the company.

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 750 through the issue of 1,500 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 May 2005.

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 8,792,102 divided on 17,584,204 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)."