DNO Q2 2010: Increased production volumes and satisfactory results

DNO International ASA achieved an EBITDA of NOK 171 million from total sales of

NOK 285 million in the second quarter of 2010. Both sales and EBITDA were up by

10 per cent from Q1 to Q2. The improved results are mainly related to increased

production.

"We are satisfied with the financial results from our operations in the second

quarter. The higher oil production and improved cash flow from operations enable

us to plan for new project developments and increase exploration drilling going

forward", says Managing Director Helge Eide.

Cash flow from operations was NOK 183 million in the second quarter, bringing

the cash position up to NOK 822 million by 30 June. DNO booked a non-cash

impairment loss of NOK 199 million in the second quarter, mainly related to

lower share price in Det norske oljeselskap ASA. This is the main reason for the

net loss of NOK 121 million.

See attached press release, Q2 2010 Interim Report and presentation.

Oslo, 18 August 2010

DNO International ASA

Corporate Communications

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1438491]

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