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Norske Skog Sells Properties in Norway
Lysaker, Norway, 12 January 2011 -- Norske Skog has entered into an agreement concerning sale of Klosterøya to a consortium consisting of Conceptor Eiendomsutvikling AS and Bratsberg Gruppen AS, and has finalized sale of a property at Nedre Ranheim. The total proceeds are approximately NOK 240 million. 

After the shut down of Union mill, Norske Skog has devoted considerable resources to clearing up and developing Klosterøya, and the company sees it as a good solution that others now will take over the further development.

"This is a milestone for the development of Skien and the entire Grenland area. In cooperation with local authorities and businesses, Norske Skog has emphasized the development of residential, business and outdoor recreation areas. We consider the Bratsberg group and Conceptor Eiendomsutvikling to be ideal partners in moving this work forward," said Sven Ombudstvedt, Norske Skog's president and CEO. 

Parts of the proceeds from the sale have been granted as seller's credit and will be paid off during a five-year period. Norske Skog will retain a minority ownership share in Bratsberg Holding AS, which in addition to Klosterøya, will have a portfolio including several development properties in the cities of Porsgrunn and Skien.

The sale of Nedre Ranheim (Trondheim) to Maja Eiendom AS was finalized at the end of December 2010.

Sale of the two properties will ensure a total accounting gain of around NOK 80 million. Most of this will be booked in the fourth quarter of 2010.

With the sale of Klosterøya and Nedre Ranheim, Norske Skog has sold properties in Norway for approximately NOK 280 million during 2010.

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