Reference is made to the stock exchange notice dated 30 April 2008 regarding the letter of intent entered into with a group of buyers to sell Norgani Hotels AS ("Norgani") and the update stock exchange notice dated 21 May 2008. The Board of directors of Norwegian Property ASA ("NPRO" or the "Company") has resolved to seize the current negotiations with the potential buyers. NPRO plans to maintain ownership of Norgani but the company has been contacted by several attractive potential partners and/or buyers of Norgani and will continue to investigate these opportunities in order to create shareholder values.

 

The company believes that following the proposed rights issue it will be better prepared for such discussions regarding Norgani Hotels as the strength of the balance sheet will ensure an improved negotiation position.

 

For further information, contact

Petter Jansen, CEO, Norwegian Property ASA, Tel: +47 900 98 728

Dag Fladby, CIO, Norwegian Property ASA, +47 908 91 935