19 Apr 2005

Norske Skog . Currency Items etc., Q 1 2005

Norske Skog releases figures for Q 1 2005 on May 4th, around noon.

A live webcast will be held from Norske Skog's offices at 2 PM the same day. More information about this event will be available on our web site www.norskeskog.com later today.  
The Silent Period ahead of the release starts on Thursday, April 21.
 
Norske Skog's trade-weighted basket of currencies (the "Norske Skog Index") had an average value of  88.7 in Q 1, 2005, compared with 88.3 in Q 4 2004 and 94.5 in Q 1 2004. The value on March 31, 2005, was 88.9, compared with 87.5 on December 31, 2004. The starting point of this index is January 1, 2002.
 
IFRS (International Financial Reporting Standard)
Norske Skog has adopted the IFRS accounting standard as of January 1, 2005, so the Q1 results will be compared with restated figures for 2004.  The effects of IFRS on Norske Skog's financial statements are described in our annual report for 2004, and in a separate press release issued on February 3, 2005.
 
As a result of IAS 39, embedded derivatives are to be marked to market as of 2005.  Norske Skog has Norwegian power contracts that are affected by this change.  These contracts contain pricing clauses in the future that include foreign exchange elements.   Norske Skog has marked these embedded derivatives to market values as of Jan 1, 2005, which resulted in an increase in equity of NOK 315 million.  Going forward, fluctuations in the value of these derivatives will be taken through the P&L statement.  In addition, the implementation of IAS 39 results in a reduction in the value of interest and foreign exchange hedging instruments of NOK 150 million, which reduces the company's equity.

  
Oxen°en, April 19, 2005

NORSKE SKOG
Investor Relations