Norske Skog's trade-weighted basket of currencies (the "Norske Skog Index") had an average value of  87.3 in Q4, 2005, compared with 86.6 in Q3, 2005, and 88.3 in Q4, 2004. The value on December 30, 2005, was 88.4, compared with 87.2 on September 30, 2005. The starting point of this index is January 1, 2002.

 

There has been a positive effect of approximately NOK 200 million in the value of embedded derivatives related to Norske Skog's energy contracts in Q4 2005.

 

Norske Skog Union

 

Norske Skog's Corporate Assembly decided in its meeting on October 4, 2005 to close down the Union mill during Q1, 2006. The effects on Norske Skog's accounts, to be booked in Q4, are as follows:

Write-down of the book value of buildings and machinery from about NOK 180 million to NOK 28 million will be recorded as an expense in the profit and loss account, but will have no cash effect. The remaining value of NOK 28 million reflects the expected cash flow until closure at the end of February.  A provision of approximately NOK 270 million will be made for restructuring costs, including both redeployment and redundancy programmes for employees, removing machinery and plant, and environmental clean-up. This will have a cash effect as the relevant expenditures are incurred.  The cost related to the closure of the Union mill will be included at the corporate level, and will not have an effect on the results for Region Europe.

 

Norske Skog Pisa

 

A provision for a power transmission charge dispute in Brazil of NOK 55 million will be booked in Q4.  This amount will be included in the result for Region South America.

 

Oxenøen, January 18, 2006

NORSKE SKOG

Investor Relations