Magnora ASA

Legal Proceedings Report • Oct 16, 2015

Corporate investigation report handed over to Norwegian authorities (ØKOKRIM)

Corporate investigation report handed over to Norwegian authorities (ØKOKRIM)

Sevan Marine ASA ("Sevan" or the "Company") refers to

the Stock Exchange notice 29 June 2015. Based on

Brazilian press articles indicating irregularities

involving Sevan in the period 2005-2008, the Board of

the Company initiated an independent corporate

investigation (the "Investigation"). The Board has

received the investigation report (the "Report") from

Advokatfirmaet Selmer DA ("Selmer") and has decided to

hand it over to the Norwegian authority for

investigation and prosecution of economic and

environmental crime ("ØKOKRIM").

Selmer has, as independent corporate investigator, in

the period June to October 2015 performed the

Investigation in accordance with a mandate agreed with

the Board of Directors. The Investigation has been

focusing on the circumstances and facts surrounding

how contracts with Petroleo Brasileiro S/A.

("Petrobras") were obtained. The Investigation has

involved document review and searches in available

files as well as interviews with key individuals.

The contracts were awarded in the period 2005-2008.

Sevan was restructured in 2011 and at that time

disposed of its asset-based activities through the

demerger and subsequent IPO of the drilling activities

and the sale of FPSO assets. At this time, payments

under related agency agreements from the Company came

to an end. In connection with the restructuring, the

Company got a new shareholder structure, board and

management.

Sevan is today a technology and engineering company

with a changed business strategy.

The main conclusion of the independent corporate

investigator is that it is more likely than not, that

illegal conduct in the form of improper payments to

obtain business occurred when Petrobras awarded

contracts to Sevan in the said time period (2005-2008)

regarding Sevan Piranema, Sevan Driller and Sevan

Brasil. There are indications of suspicious acts and

transactions, constituting both a neglect of Sevan's

affairs and/or a conflict with Sevan's interests and

such acts may potentially represent economic crime.

According to the Report, the possible wrongdoings

identified are connected to individuals who have left

Sevan.

Based on the above, and as there are limitations as to

what more a private party can realistically achieve by

further investigative steps, the Board of Directors

has handed over the Report to ØKOKRIM. The Company

will make available evidences and documentation

secured in the Investigation. The Board of Directors

has initiated early contact with the relevant

prosecutors' offices in other concerned jurisdictions

(US, UK and Brazil) in coordination with counsels

retained in the relevant jurisdictions.

It has during the course of the Investigation been

suggested in Brazilian media that Petrobras executives

allegedly provided privileged information to investors

regarding signing of contracts between Petrobras and

Sevan. Such information has been shared with the Oslo

Stock Exchange and ØKOKRIM. The conclusion from the on-

going Investigation pertaining to this will be

disclosed when available.

The Board of Directors is assessing further actions

and implications of the findings contained in the

Investigation.

Chairperson Siri Hatlen states:

"With regret the Board of Directors has noted the

findings from the independent corporate investigation

related to contracts awarded in the period 2005-2008.

The Board of Directors has decided to hand over the

investigation report to ØKOKRIM.

Sevan as a listed company is dependent on our

reputation as a trustworthy business partner. Sevan

practises no-tolerance for corruption and is dedicated

to comply with all relevant laws and principles for

proper business conduct.

Sevan will continue to cooperate with relevant

authorities."

*******

The information in this announcement is subject to the

disclosure requirements of the Norwegian Securities

Trading Act section 5-12 and/or the Oslo Børs -

Continuing Obligations.

Sevan Marine ASA is specializing in design,

engineering and project execution of floating units

for offshore applications, based on its patented

cylindrical floater technology. Sevan Marine ASA is

listed on Oslo Børs with ticker SEVAN. For more

information, please refer to www.sevanmarine.com.

For more information please contact:

Siri Hatlen, Chairperson, Sevan Marine ASA

siri.hatlen@sevanmarine.com

+47 917 44 863 mobile

Carl Lieungh, CEO, Sevan Marine ASA

carl.lieungh@sevanmarine.com

+47 916 64 720 mobile