Press Releases

NORECO Stavanger, 3 July 2008: Norwegian Energy Company ASA (OSE:NOR), Reference is made to the press release dated 30 June 2008 were Norwegian Energy Company ASA ("Noreco") offered all 6% Noreco convertible bondholders to convert their bonds to shares whereby accepting bondholders would receive a fixed premium of 7.0% to par value plus accrued interest in cash.

Noreco received acceptance from bondholders representing NOK 211.5 million of the outstanding NOK 430 million in bonds.

The new shares will be issued and registered in the Register of Business Enterprises and the Central Securities Depository as soon as possible.

The offer forms part of Noreco's continued efforts to optimize it's capital structure. Conversion of the bonds will increase Noreco's market capitalization, reduce debt and reduce future interest costs. Furthermore, Noreco has experienced a strong increase in its shares' liquidity since the private placement in April and conversion of the bonds is expected to further support this trend.

Contact info Pareto Securities AS: +47 22 87 88 11

NORECO

http://www.noreco.com

ISIN: NO0010379266

Stock Identifier: XOSL.NOR