NONG : Final result of offerings

Both the rights offering and the employee offering at SpareBank 1 Nord-Norge closed on Thursday 26 May 2011 at 1730hrs (Norwegian time). The final allocation of new equity capital certificates is now available.

By the expiry of the subscription period, SpareBank 1 Nord-Norge had received subscriptions for a total of 18.3 million new equity capital certificates in the rights offering. 14,329,659 new equity capital certificates were offered, and the rights offering was consequently oversubscribed by about 28 per cent. The overall subscribed amount is about NOK 575 million.
 
13.5 million equity capital certificates, representing 94 per cent of the new equity capital certificates in the rights offering, were subscribed for by the exercise of subscription rights. 0.8 million equity capital certificates, or 6 per cent, were subscribed for through over-subscription with the use of subscription rights.

In the employee offering, SpareBank 1 Nord-Norge received subscriptions for a total of NOK 16.3 millions, equaling 572 thousand equity capital certificates distributed on 280 employees.

The employee offering is part of the banks announced private placement of up to NOK 150 million in addition to the rights offering. The private placement is mainly planned as a placement towards the Sparebankstiftelsen SpareBank 1 Nord-Norge.

The Main Board of Directors of SpareBank 1 Nord-Norge has at its meeting today approved the final allocation of equity capital certificates in the offering. The allocation has been carried out in accordance with the allocation criteria set forth in the prospectus dated 9 May 2011. No allocation has been made to subscribers without subscription rights.

Today a letter will be dispatched concerning the allocation of new equity capital certificates and the corresponding subscription amount to be paid by each subscriber. The subscription amounts fall due for payment on 3 June 2011; see payment procedures described in the prospectus.

The new equity capital certificates may not be transferred or traded until they have been paid for in full and the increase of capital has been registered with the Register of Business Enterprises. Registration is expected to take place on or about 8 June 2011. The new equity capital certificates will be transferred to the VPS accounts of each individual subscriber on or about 9 June 2011 and will concurrently be quoted on the Oslo Stock Exchange.

SpareBank 1 Nord-Norge will as a result of the rights offering receive proceeds of NOK 451.4 million before deduction of transaction costs. The employee offering gives SpareBank 1 Nord-Norge gross proceeds of NOK 16.3 million.

Arctic Securities, Argo Securities and SpareBank 1 Nord-Norge Markets acted as managers for the rights offering.

Tromsø, 1 June 2011

Contact persons at SpareBank 1 Nord-Norge:
CEO  Hans Olav Karde:               +47 901 51 981
Deputy CEO  Oddmund Åsen:     +47 906 72 757
CFO Rolf Eigil Bygdnes:              +47 905 19 774

About SpareBank 1 Nord-Norge:

SpareBank 1 Nord-Norge is a leading provider of financial products and services within the retail banking and corporate banking markets and public sector throughout the region. The Bank has a total customer base of around 244,000 retail banking customers, around 36,500 corporate customers, including public sector agencies, clubs and associations, and around 101,000 insurance customers. The Bank has 74 branch offices in Finnmark, Troms, Nordland and Svalbard.

In September 2010, SpareBank 1 Nord-Norge established banking operations in Russia through North-West 1 Alliance Bank.  SpareBank 1 Nord-Norge holds a 75 per cent ownership interest in the bank, while the remaining 25 per cent of the shares is owned by SpareBank 1 Nord-Norge's Russian partner Bank Tavrichesky in St. Petersburg.  The new bank is headquartered in St. Petersburg and has a branch office in Murmansk

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