PhotoCure - Employee Share Options Excercised

Oslo, Norway, 20 August 2003

Employees in PhotoCure ASA have exercised share options according to the company's employee incentive program. The Board of Directors has therefore decided to increase the share capital with NOK 36,000 through the issue of 72,000 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 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 8,788,500 divided on 17,577,000 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)."