Borregaard — M&A Activity 2015

Oct 21, 2015

Borregaard: Agreement signed with Flambeau Rivers Paper for the acquisition of their lignin business

Borregaard: Agreement signed with Flambeau Rivers Paper for the acquisition of their lignin business

Borregaard has signed an agreement with Flambeau Rivers Paper LLC ("Flambeau")

for the acquisition of the lignin business based at the latter's Park Falls

operations in Wisconsin, USA. The parties have also entered into a long-term

lignin raw material supply agreement. Closing is expected to take place during

the 4(th) quarter of 2015. The acquired business will be integrated into

Borregaard's existing US operation.

The annual lignin volume is approximately 40,000 metric tonnes dry substance.

The products are sold to the low and medium value segments in North America.

- We are very pleased to add Flambeau's lignin business to our North American

operations. This will broaden our offering to our customers in this region, says

Morten Harlem, Executive Vice President, Performance Chemicals.

Sarpsborg, 21 October 2015

Contacts:

Director Investor Relations, Jørn Syvertsen, +47 958 36 335

SVP Organisation and Public Affairs, Dag Arthur Aasbø, +47 918 34 108

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

[HUG#1960214]