Nel ASA

Earnings Release • May 4, 2016

NEL ASA: First quarter 2016 results

(Oslo, 4 May2016) NELASA("NEL")reportedrevenues of NOK26.0 million, comparedtoNOK17.6 millioninthe same quarter last year, anda negative EBITDA of NOK7.6 million,reflectingthe highactivitylevelwithinfuture growthinitiatives andcosts associatedwithongoingproductionrampup.

In the first quarter of 2016,NEL HydrogenASand H2 LogicA/S(H2 Logic) were awarded contracts of approximatelyNOK25 million for the deliveryof a hydrogen refuelling station with integrated on-site hydrogen production to Uno-XHydrogenAS. In addition,NEL FuelASand Uno-Xentered into a final agreement for the rollout of minimum 20 hydrogen refuelling stations covering all the major cities in Norwaywithin 2020.

Revenues in the first quarter were NOK26.0 million, compared to 17.6 million in the same quarter last year. The revenues were negativelyimpacted bythe planned maintenance and production optimisation programme at the Notodden facility.

EBITDAwas negative NOK7.6 million in the period, reflecting the high activitylevel within future growth initiatives and costs associated with ongoing production ramp up. The companyhad a pre-taxloss ofNOK10.1 million in the first quarter of 2016, compared to a pre-taxloss ofNOK1.6 million in the first quarter of 2015, and NEL ended the first quarter of 2016 with a cash balance ofNOK289 million.

Following the closing of the quarter,NEL has announced several keyinitiatives:

• H2 Logic entered into a contract for the purchase of a facilityin Herning,Denmark for the development of a newlarge-scale production plant for hydrogen refuelling stations. The factorywill have an annual capacityto manufacture up to 300 refuelling stations per year, sufficient for refuelling 200 000 newFuel Cell Electric Vehicles (FCEV) annually.
• NEL and partners initiated the project"Hyper", a feasibilitystudyof the potential for large scale hydrogen production in Norwayfor export to the European and Japanese markets. The project has received a 14 MNOKgrant from the ENERGIX-programme of the Research Council ofNorway.
• H2 Logic launched the H2Station®CAR-200, a hydrogen refuelling station that triples the fuelling capacity,while reducing the footprint to one third of the current generation.
• NEL entered into a Letter of Intentwith MeløyEnergiASand MeløyNæringsutviklingASto establishGlomfjord HydrogenAS, for the potential development of a large-scale, low-cost hydrogen production facilityinGlomfjord Industrial Park in Meløy,Norway.

"The first quarter was a busy one for NEL, aswitnessed by the subsequent string of announcementwe have made, and underlines the competiveness of the company: We have the most energy-efficient electrolyserswith a robust and proven technology, our refuelling stations have the highest uptime and the lowest cost of ownership and we have a long list of ongoing, newtechnology developments. We expect continued market growth going forward asHydrogen Fuel Cell Vehicleswill increasingly be introduced by major car manufacturers throughout 2016", says Jon André Løkke, chief executive officer ofNEL.

The complete financial report and a presentation giving a general update on the business are enclosed.

For additional information, please contact:

JonAndré Løkke,CEO, + 47 90 74 49 49

Lars Christian Stugaard,CFO, +47 47 63 05 22

NEL ASAis the first dedicated hydrogen company on theOslo Stock Exchange. Since its foundation in 1927, NELHydrogen has a proud history of development and continual improvement of hydrogen plants. NEL is global a supplier of hydrogen solutions, covering the entire value chain fromhydrogen production technologies to hydrogen refuelling stations for fuel cell electric vehicles. H2 Logic A/Sis a leading manufacturer of H2Station®hydrogen refuelling stations that provides fuel cell electric vehicles with the same fast fuelling and long range as conventional vehicles today. www.nel-asa.com