Norske Skog ASA

Earnings Release • Jan 12, 2011

Norske Skog sells properties

Norske Skog has entered into an agreement concerning sale of Klosterøya to a

consortium consisting of Conceptor Eiendomsutvikling AS and Bratsberg Gruppen

AS, and has at the same time also finalised sale of a property at Nedre Ranheim.

The total proceeds are approximately NOK 240 million.

After the shut down of Union mill, Norske Skog has devoted considerable

resources to clearing up and developing Klosterøya, and the company sees it as a

good solution that others now will take over the further development.

"This is a milestone for the development of Skien and the entire Grenland area.

In cooperation with local authorities and businesses, Norske Skog has emphasised

the development of residential, business and outdoor recreation areas. We

consider the Bratsberg group and Conceptor Eiendomsutvikling to be ideal

partners in moving this work forward", says Norske Skog's President and CEO Sven

Ombudstvedt.

Parts of the proceeds from the sale have been granted as seller's credit and

will be paid off during a five-year period. Norske Skog will also retain a

minority ownership share in Bratsberg Holding AS, which in addition to

Klosterøya, will have a portfolio including several development properties in

the cities of Porsgrunn and Skien.

The sale of Nedre Ranheim (Trondheim) to Maja Eiendom AS was finalised at the

end of December.

Sale of the two properties will ensure a total accounting gain of around NOK 80

million. Most of this will be booked in the fourth quarter of 2010.

With the sale of Klosterøya and Nedre Ranheim, Norske Skog has sold properties

in Norway for approx. NOK 280 million during 2010.

Oxenøen, 12 January 2011

Norske Skog

Communication and Corporate affairs

For further information:

Media: The financial market:

Vice President Corporate Affairs Senior Advisor

Carsten Dybevig Frode Tegnér

Mob: (+47) 917 63 117 Mob: (+47) 906 19 102

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

(Norwegian Securities Trading Act)

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