Selvaag Bolig ASA has signed a letter of intent to develop a larger area in the center of Sandnes in a joint venture with AVA Eiendomspartner AS and Varner Kapital AS. The area is approximately 7.5 hectares and gives room for development of some 600-700 residential units and 60,000 square meters of commercial area.

Under the agreement, Selvaag Bolig will acquire 40 percent of the shares in Sandnes Eiendom Invest AS, the company currently holding the land. The final agreements will give Selvaag Bolig the right to acquire the land at market value after final zoning.

The transaction is subject to satisfactory due diligence of Sandnes Eiendom Invest, final agreements and board approvals from parties involved.

CEO Baard Schumann says this is a strategic investment for Selvaag Bolig.

- The transaction is in line with our strategy to continuously refill our landbank, supporting our long term goal to finalize 1,500 residential units per year. The land acquired is located in the centre of Sandnes, one of our core areas, says Schumann.

For further information, please contact:
Baard Schumann, CEO Selvaag Bolig
Telephone: +47 940 80 000, e-mail: bas@selvaagbolig.no

Haavard Rønning, CFO Selvaag Bolig
Telephone: +47 400 20 019, e-mail: hroe@selvaagbolig.no

Selvaag Bolig ASA is a residential property developer rooted in 60 years of Selvaag history and experience. At any given time, the company has several thousand homes under construction throughout the country. Selvaag Bolig focuses particularly on the Greater Oslo area, Bergen and Stavanger. The company manages the entire process, from the purchase of land to the sale of finished homes. Selvaag Bolig offers a wide variety of property types, which it markets under the brand names Selvaag Start, Selvaag Hjem and Selvaag Pluss. The company is led by CEO Baard Schumann, while Olav Hindahl Selvaag chairs the board of directors. The company is headquartered at Løren in Oslo.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.