17 Oct 2005

Synthetic options in Norske Skog

Based on Norske Skog's long-term incentive program, the following number of synthetic options has today been allocated to Norske Skog's corporate management team:

Jan Oksum 60,000 options (current ownership 15,583 shares and 120,000 options)
 
Christian Rynning-Tønnesen, 30,000 options (1,430 shares, 60,000 options)
 
Vidar Lerstad 30,000 options (5,826 shares, 60,000 options)
 
Rolf Negård 30,000 options (2,019 shares, 60,000 options)
 
Hanne Aaberg 30,000 options (2,251 shares, 60,000 options)
 
Jarle Dragvik 30,000 options (3,640 shares, 60,000 options)
 
Jan H. Clasen 30,000 options (1,634 shares, 60,000 options)
 
Ketil Lyng 30,000 options (4,577 shares, 60,000 options)
 
Rob Lord 30,000 options (3,223 shares, 60,000 options)
 
Antonio Dias 30,000 options (2,627 shares, 60,000 options)
 
The number of shares above are before any purchase in the current equity offering.
 
Strike price is NOK 95, which is the average of the daily closing price of Norske Skog's shares in the period Sept 19 - Sept 30, 2005. The closing price has been adjusted for value of subscription rights in the days Sept 19 - Sept 22.
 
The options expire Dec 31, 2008, and can be exercised in the period Jul 1 - Dec 31, 2008. If the options are exercised, an amount corresponding to the difference between market price and strike price will be paid to the holder. This amount will be treated as salary, and the net amount, less tax, shall be used to buy Norske Skog shares in the market. These shares must be held for three years.  It will therefore take around six years before a potential capital gain can be realized.  The options are valid as long as the persons entitled are employed by Norske Skog. The program has no dilution effect.
 
Strike price adjustment of options issued previously:
The strike prices of options granted in 2003 and 2004 have been adjusted due to the impact of the current rights offering.  The adjustment factor is 0.9048.  A total of 300,000 options, with an original strike price of NOK 134.50, can be exercised in the period July 1 to Dec 31, 2006.  This strike price has consequently been adjusted to NOK 121.50.  There are 360,000 options which can be exercised from July 1 to Dec 31, 2007.  Of these, 330,000 options had an original strike price of NOK 117 which has now been adjusted to NOK 106.  The remaining 30,000 options which can be exercised in 2007 have a strike price of NOK 121.50.
 
 
 
Oxenøen, October 17, 2005
 
NORSKE SKOG
Corporate Communication