Norske Skog will announce its accounts for the third quarter of 2007 on Friday 2 November at 08.00 CET. 

 

There will be a webcasted presentation at the company's premises at 13.00 CET on the same day. More information concerning this event will be published on Norske Skog's website www.norskeskog.com.  

 

The silent period preceding the announcement will start on Monday 22 October. 

 

Market and cost effects on the result, and impacts from a strong Norwegian currency

 

The operating result in third quarter compared with second quarter has been negatively affected by continued price increases on recovered paper measured in local currencies, and somewhat lower selling prices in some markets. As previously reported, there has been a price reduction of 7 per cent in Australia as of 1 July 2007.

 

Currency effects, to a large degree from a stronger Norwegian currency, have in total reduced the operating result by about NOK 100 million compared with the second quarter. This consists of a negative consolidation effect on the operating income of about NOK 200 million and a positive consolidation effect on the operating costs of about NOK 150 million. In addition, there is a negative translation difference on accounts receivable of about NOK 50 million.

 

Result effects from energy hedging and currency effects under financial items

 

The net result from energy hedging related to Norske Skog's energy contracts is a gain of about NOK 70 million in the third quarter. This consists of unrealised changes in value on the long-term energy contracts in Norway and Brazil, related to underlying derivatives. The amount has been included in the operating result, but not in the business segments, and has no cash effect.

 

Currency effects, included under financial items, make up a gain of about NOK 370 million in total. Of this, about NOK 180 million are related to gains from cash flow hedging, whereas the rest is mainly gains from currency loans, which cannot be recorded directly against equity under the accounting regulations.

 

Norske Skog's trade-weighted currency basket ("The Norske Skog index") had an average value of 84.8 in the third quarter of 2007, against  87.1 in the second quarter of 2007 and 88.3 in the third quarter of 2006. The end value of the index was 81.3 as of 30 September 2007, against 85.8 as of 30 June 2007. The index started on 1 January 2002.

Oxenøen, 18 October 2007
 
NORSKE SKOG
Investor Relations