Reference is made to the notice of an Extraordinary General Meeting in Norwegian Property ASA ("NPRO" or "The Company") dated 3 June 2008. The Extraordinary General Meeting resolved in a meeting held on 17 June 2008 to carry out the share capital increase proposed by the Board, raising gross proceeds of approximately NOK 2.5 bn. The share capital will be increased by the issuance of 96,153,846 new shares, each with a nominal value of NOK 25. The equity issue will be carried out in the form of a rights issue with pre-emptive rights for existing shareholders at a subscription price of NOK 26 per share (the "Rights Offering"). The Rights Offering has been fully underwritten by a consortium established by Pareto Securities AS and SEB Enskilda AS. The purpose of the Rights Offering is to finance the remaining settlement of the acquisition of Norgani Hotels ASA and to strengthen the Company's balance sheet.

 

NPRO's shareholders as of 18 June 2008 will be given pre-emptive rights to subscribe for the shares and the company will issue 1,097 subscription rights per share owned as of 18 June 2008. 1 subscription right will give the right to subscribe for 1 new share. The subscription rights will be listed on Oslo Børs in the subscription period and acquired subscription rights give equal right to subscription as allocated subscription rights. Fractions of subscription rights will not be issued and the number of subscription rights allocated to each shareholder will be rounded down to the closest whole subscription right.

 

Subscribers in the rights issue will be allotted shares pursuant to the allotted and/or acquired subscription rights validly subscribed for during the subscription period. If the subscription rights are not fully utilised, those who have used their subscription rights and who have oversubscribed will have the right to take over the remaining shares which have not been subscribed for, on a pro rata basis. As far as possible, a pro rata allotment will be carried out pursuant to the number of subscription rights that each person has used. If the pro rata allotment cannot be completed due too to few remaining shares, allotment will be carried out by a routine of drawing lots.

 

Persons that do not hold subscription rights in the Company may subscribe for shares in the Rights Offering. If, subsequent to the allotment described above, there still remain shares which are not allotted, the remaining number of shares shall be distributed among other subscribers pursuant to the subscription amount. In the event of oversubscription, allotment on a pro rata basis pursuant to the subscription amount shall be carried out.

 

If there still remain shares which have not been allotted after the allocation provisions as set out in the Norwegian Public Limited Liability Companies Act has been taken into account, the remaining new shares shall be allotted to the participants in the underwriting consortium pursuant to the guarantee agreements entered in to.

 

NPRO's shares (ticker NPRO) will be listed exclusive subscription rights from and including Thursday 19 June 2008.

 

The Company is preparing a prospectus in connection with the Rights Offering. The subscription period will start as soon as the prospectus is approved by Oslo Børs ASA, expected to be on or arobout 26 June 2008. The subscription period will run for two.

 

The rights issue is managed by Pareto Securities AS and SEB Enskilda AS.

 

For more information, please contact

Widar Salbuvik, Chairman of the Board, Norwegian Property ASA, Tel. +47 901 80 060

 

This information is subject of the disclosure requirements acc. to §5-12 in the Norwegian Securities Trading Act