Norske Skog's trade-weighted basket of currencies (the "Norske Skog Index") had an average value of  86.6 in Q 3, 2005, compared with 87.9 in Q 2, 2005, and 92.0 in Q 3, 2004. The value on September 30, 2005, was 87.2, compared with 87.3 on June 30, 2005. The starting point of this index is January 1, 2002.

 

There has not been any major change in the value of embedded derivatives related to Norske Skog's energy contracts in Q 3 2005.

 

Norske Skog's Corporate Assembly decided in its meeting on October 4 to close down the Union mill during Q 1, 2006. The expected effects on Norske Skog's accounts, to be booked in Q 4, are as follows:

Write-down of the book value of buildings and machinery from about NOK 180 million to zero will be recorded as an expense in the profit and loss account, but will have no cash effect. Furthermore, a provision of roughly NOK 250 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.