24 Jan 2006

Sale of Forestia AS

Norske Skog has entered into an agreement with Byggma ASA for the sale of shares in Norske Skog's wholly-owned subsidiary Forestia AS. The sale reduces Norske Skog's net interest-bearing debt by approximately NOK 170 million, and will result in a marginal loss compared with book-value.

The financial effect will be included in Norske Skog's accounts for Q 4, 2005. The transaction is dependent upon a due diligence process and also approval from both companies' Board of directors. The transaction is expected to close by late February 2006.
 
Forestia is the Nordic region's leading producer of particleboard intended for the building and furniture sectors, and also produces I-beams for construction purposes.  The company has 270 employees at three plants in Norway. Operating revenue is around NOK 600 million.
 
Byggma ASA is a public company with around 500 employees and activities within several building materials and home improvement sectors. Operating revenue after the acquisition of Forestia will be in the region of NOK 1.5 billion.
 
Oxen°en, January 24. 2006
NORSKE SKOG
Corporate Communications