Forestia, a company which produces particle board in Norway, has since 1999 been owned by Norske Skog by 90.1 % and by Moelven (a sawn timber producer) by 9.9 %.

 

There has been a shareholder agreement between the two parties, which expired at the end of 2004. Moelven has exercised its option to sell the shareholding to Norske Skog, after negotiations between the two owners. Forestia has subsequently become a 100 % owned subsidiary of Norske Skog.

 

The transaction has negligible economic impact on Norske Skog, and has no impact at all on Forestia's daily operations.

The purchase of  Moelven's holding in Forestia does not indicate any change with regard to Norske Skog's strategy of concentrating on the core business, which is newsprint and magazine paper.

 

Oxenøen, March 4, 2005

 

NORSKE SKOG

Corporate Communication