NONG - Bankruptcy of REC Wafer Norway AS - SpareBank 1 Nord-Norge's exposure towards Bodø-Gruppen AS

In connection with the bankruptcy of REC Wafer Norway AS, we can advise the following with regard to the SpareBank 1 Nord-Norge Group's commitments in companies related with REC Wafer Norway AS:

The company Bodø-Gruppen AS owns the industrial premises that are let to SIC Processing AS, (Norway).  The latter has a production agreement with REC Wafer Norway AS. As at today's date, SpareBank 1 Nord-Norge has a lending commitment with Bodø-Gruppen AS amounting to NOK 185 million.  The company's activities are entirely associated with ownership of the industrial building and the lease agreement with SIC Processing AS.  Bodø-Gruppen AS has no other liabilities of  significance.  Bodø-Gruppen AS has been given a rent guarantee by SIC Processing parent company (Germany) corresponding to 18 months' rent, representing a total nominal amount of NOK 65 million.

The bank's lending commitment is also secured with first mortgage in the industrial building.

SpareBank 1 Nord-Norge Invest (SNN Invest) owns 42% of Bodø-Gruppen AS.  This holding has a book value of NOK 25 million.

A loss assessment of the Group's commitment in Bodø-Gruppen AS will be made in connection with the quarterly accounts for Q3 2012.

Contact person at SpareBank 1 Nord-Norge:
CFO  Rolf Eigil Bygdnes; tel +47 905 19774

Tromsø, 17/08/2012

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)