Nel ASA

Share Issue/Capital Change • Oct 7, 2010

Successful Private Placement of NOK 70 million

Successful Private Placement of NOK 70 million

Reference is made to stock exchange notice dated 15 September 2010

regarding engagement of DnB NOR Markets as financial advisor in

connection with the Company's equity financing.

As part of the Company's long-term financing, DiaGenic has carried out a

conditional private placement of NOK 70 million towards existing and new

investors (the "Private Placement") based on a book building process.

The purpose of the Private Placement is to finance operating costs and

to secure the financial strength to achieve key milestones towards

cash-flow break-even expected in 2H 2012..

The Private Placement was subscribed approximately 1.4 times. The

subscription price in the Private Placement was set to NOK 0.50 per

share and gross proceeds from the Private Placement will thus be NOK 70

million. The shares allocated in the Private Placement will constitute

approximately 67% of the outstanding shares in the Company after

registration of the capital increase. When the capital increase is

registered, the total amount of shares in DiaGenic will increase from 70

236 520 to 210 236 520 shares, each with a nominal value of NOK 0.05 per

share. The share capital will increase from NOK 3 511 826 to NOK 10 511

826 at the registration of the capital increase. Shares subscribed for

in the Private Placement are expected to be delivered to the subscribers

VPS-accounts on or about 3 November 2010 subject to the necessary

listing prospectus being approved by Oslo Børs within this date and made

public, as well as registration of the Private Placement with the

Norwegian Register of Business Enterprises.

To promote equal treatment of the shareholders, the board of directors

of DiaGenic has decided to propose a subsequent repair offering (the

"Subsequent Offering") directed at existing shareholders of the Company

that did not participate in the Private Placement. In the Subsequent

Offering it will be proposed to issue up to 60 million shares at NOK

0.50 per share directed towards shareholders in the Company as of 6

October 2010 who were not allocated shares in the Private Placement. For

the Subsequent Offering it will be proposed to issue subscription rights

that will be listed and tradable.

The Private Placement and the Subsequent Offering is conditional upon

necessary resolutions in the general meeting. The board of directors

will call for an extraordinary general meeting on 29 October 2010 with a

proposal to resolve the Private placement and the Subsequent Offering.

The Subsequent Offering is expected completed in late November/early

December 2010.

The shares in DiaGenic will trade without the right to participate in

the Subsequent Offering from and including today 7 October 2010

(ex-date).

DnB NOR Markets acts as manager for the Private Placement and the

Subsequent Offering.

For further information, please contact:

Henrik Lund (chairman of the board), phone +47 909 71 219