22 Sep 2005

Terms of the Rights Offering in Norske Skog

Norske Skog's extraordinary general meeting today approved the proposed rights offering in connection with the planned acquisition of the remaining 50 % share in PanAsia Paper Company. Norske Skog expects to raise a total of approximately NOK 4 billion through this offering.

In a Board meeting after the EGM, the details of the rights offering were decided as follows:
- Subscription price: NOK 70 per new share
- Total number of new shares: 56,808,538 shares.
- Total number of shares after the offering: 189.945.626 shares, each with a par value of NOK 10.
- Norske Skog's share capital will subsequently increase by NOK 568,085,380 through this offering, and amount to NOK 1,899,456,260 after the offering is completed.
- Existing shareholders as of 22 September (record date) will have a pre-emptive right to participate in the offering.
- Each share held on the record date, will entitle to one transferable right.
- Holders of rights will be entitled to subscribe, at  the subscription price for 3 new shares for every 7 rights held.
 
The detailed timetable is expected to be as follows:
23 September: Trading of shares on an ex-rights basis
30 September: Trading starts in subscription rights
30 September - 13 October: Subscription period and trading of rights on the Oslo Stock Exchange
26 October: Trading is expected to begin in the new shares
 
Over-subscription will not be allowed, and it is not possible to subscribe in the offering without owning rights.
 
It is expected that the prospectus on the rights offering will be published and sent to the shareholders as of the record date on or around 29 September 2005.
 
 
Oxen°en, 22 September, 2005
 
NORSKE SKOG
 
Corporate Communication
 
Contact person: Rune Gjessing, Director Investor Relations, phone + 47 6759 9073 or + 47 9015 2614.
 
Not for release, publication or distribution in Australia, France, the Hong Kong Special Administrative Region of the People's Republic of China, Japan, South Africa, Spain and the United States of America.
 
The information contained herein is not for publication or distribution in or into the United States of America.  The materials do not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the Securities Act of 1933, as amended, and the rules and regulations thereunder.  There is no intention to register any portion of the offering in the United States of America or to conduct a public offering of Securities in the United States of America.
The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption of registration or qualification under the securities laws of any such jurisdiction.