Orkla ASA — Earnings Release 2010

May 5, 2010

Increase in Orkla's operating profit

Orkla's first-quarter EBITA* amounted to NOK 704 million, compared to NOK 233

million in the same period of 2009. Orkla Brands, Sapa, Elkem Silicon and Jotun

(42.5 percent stake) all show profit growth in the first quarter of 2010

compared to last year. Operating revenues rose by 11% to NOK 14.9 billion due to

improved market conditions for Sapa and Elkem Silicon.

"It is positive that the measures we have implemented in the past few years have

strengthened our competitiveness. We expect Orkla Brands and Jotun (42.5 per

cent) to continue to deliver a robust performance. Sapa, Elkem Silicon and

Borregaard should be well positioned when markets normalise. Furthermore, the

Group's two solar energy investments (REC (39.7 percent stake) and Elkem Solar)

are currently in a ramp-up phase, the results of which we expect to see in

2010/2011," says President and CEO Dag J. Opedal.

Orkla Brands has recently acquired several businesses: Kalev (chocolate

manufacturer in Estonia), Peterhof (chocolate spread in Russia) and Sonneveld

(bakery ingredients in the Netherlands). In total, these companies generate

sales of almost NOK 750 million. Elkem Solar has entered into an agreement with

a leading solar energy company to deliver up to 1,000 tonnes of solar-grade

silicon in 2010.

As long as the market price of REC shares is lower than the book value, the

accounting value will be written up and down in step with market price

fluctuations. For the first quarter, this meant an accounting charge of NOK 4.6

billion. As announced, Orkla will guarantee and participate in REC's rights

issue in proportion to its shareholding. Following the issue, Orkla's average

cost price per share will be NOK 33.99, while the book value at the end of the

first quarter will be NOK 22.48 per share.

The Share Portfolio has had a satisfactory start to the year, generating a

first-quarter return of 11.2 percent, compared to the 10.2 percent return on the

Nordic index (MSCI Nordic). At quarter-end, the market value of Orkla's Share

Portfolio was NOK 11.7 billion. At quarter-end, Orkla's equity-to-assets ratio

was 52.9 percent, while its net interest-bearing liabilities, which totalled NOK

19.9 billion, were at the same level as at the end of 2009.

The presentation of the 1Q results will be held at 8.00 a.m. at Oslo Concert

Hall (Munkedamsveien 14).

Key figures Q1-10 (Q1-09) in NOK million:

Operating revenues: 14 893 (13 448)

EBITA: 704 (233)

Profit before taxes: -3 422 (-315)

Earnings per share diluted (NOK): -3.6 (0,7)

Cash flow from operations: -50 (255)

As of 31 March 2010(as of 31 March 2009):

Net interest-bearing debt: 19 861 (26 588)

Equity (%):52,9 (49,9)

Net gearing: 0.43 (0.56)

The first quarter in brief

* Improved market conditions for Orkla Aluminium Solutions and Elkem's silicon

operations contributed to 11% growth in sales: NOK 14,893 million compared

to NOK 13,448 million in the first quarter of 2009.

* Group EBITA* totalled NOK 704 million, compared to NOK 233 million last

year.

* Satisfactory profit improvement for Orkla Brands compared to a relatively

weak first quarter in 2009.

* Orkla Aluminium Solutions reduced its cost base and experienced positive

market growth that led to a significant turnaround in profits. First-quarter

EBITA* amounted to NOK 129 million (NOK -342 million)**.

* Increased capacity utilisation and higher prices for Elkem Silicon-related

(excluding Elkem Solar). Due to the extreme weather situation experienced by

the Saudefaldene plant, with low inflow and low reservoir levels, production

was considerably lower than normal, and the results for Elkem's remaining

energy operations were weak. Comparative figures for 2009 include divested

power plants.

* REC reported EBITDA of NOK 415 million for the first quarter (NOK 510

million)**. Jotun has had a satisfactory start to the year, with results

that are slightly better than last year.

* The Group's investment in REC is accounted for according to the equity

method. Orkla calculates the value of its stake on the basis of the market

price, as long as the market price is lower than the carrying value under

the principles applicable to associates. The market price was NOK 27.80

kroner on 31 March 2010, compared to NOK 44.75 on 31 December 2009. A total

of NOK -4.552 million has been recognised in the income statement in

connection with REC in the first quarter.

* Including the change in the value of REC, the Group's pre-tax result in the

first quarter was NOK -3.422 million (NOK -315 million)**.

* The Share Portfolio delivered a first-quarter return of 11.2%, compared to

the 10.2% return of the Morgan Stanley Nordic Index and the 1.4% return of

the Oslo Stock Exchange Benchmark Index.

* Net interest-bearing liabilities remained more or less unchanged during the

first quarter, totalling NOK 19,861 million at the end of the quarter.

The Group

Orkla's first-quarter operating revenues totalled NOK 14,893 million, compared

to NOK 13,448 million in the weak first quarter of 2009. The improvement is due

to the increased demand and volume growth experienced by Orkla Aluminium

Solutions, as well as higher prices and better markets for Orkla Materials'

silicon-related products. Currency translation effects had a negative impact of

NOK 846 million on first-quarter operating revenues.

Group EBITA* for the first quarter totalled NOK 704 million (NOK 233 million)**.

Profit was impacted by negative currency translation effects totalling NOK 24

million in the quarter.

Orkla Brands delivered yet another good quarter. There was a positive trend in

volume/mix, but sales were also positively affected by the timing of Easter

compared to last year. Profit growth was broad-based and driven by innovations,

cost improvements and positive currency effects related to purchasing.

Orkla Aluminium Solutions' markets showed a positive trend in the first quarter.

There was market growth in most segments in North America, and there were signs

of improvement in several European markets. The exception is the building and

construction market, which remains weak on both continents.

As regards Orkla Materials, Elkem Silicon-related reported a positive

underlying*** trend, with higher capacity utilisation and higher prices for key

products. While Borregaard Chemicals reported improved profits for the

speciality chemicals and ingredients businesses, this was more than counteracted

by the more demanding market conditions faced by the fine chemicals business.

Orkla Materials Energy reported abnormally weak results in the first quarter,

due to the extraordinary weather situation at Saudefaldene. Extremely low inflow

and very little snow resulted in low reservoir levels at quarter-end. Production

totalled only 203 GWh, compared to a presumed normal first-quarter level of over

500 GWh. Elkem Solar continued to ramp up its plant in Kristiansand, and around

400 tonnes of solar-grade silicon were produced in the quarter.

The Group's equity interests in REC (39.7%) and Jotun (42.5%) are presented

according to the equity method on the line for associates. Orkla uses the market

price as the value of its stake in REC, as long as the market price is lower

than the carrying value in accordance with the principles applicable to

associates. The market price was NOK 27.80 on 31 March 2010, compared to NOK

44.75 on 31 December 2009. A total of NOK -4,552 million was recognised in the

income statement in connection with REC in the first quarter.

The return on Orkla's Share Portfolio in the first quarter was 11.2%, compared

to the 10.2% return of the Morgan Stanley Nordic Index (1.4% for the Oslo Stock

Exchange Benchmark Index). At quarter-end, the market value of the Share

Portfolio was NOK 11,727 million, after net share sales totalling NOK 389

million. Gains, losses and write-downs on the Share Portfolio amounted to NOK

339 million in the quarter (NOK -315 million)**. Accounting write-downs totalled

NOK 11 million in the first quarter.

Dividends received by the Group in the first quarter totalled NOK 138 million

(NOK 45 million)**.

Orkla's diluted earnings per share were NOK -3.6 in the first quarter, compared

to NOK 0.7 in 2009. The change in the value of REC accounted for NOK -4.5 per

share.

* Operating result before amortisation, gain on sale of power plants,

restructuring and significant impairments

** Figures in parentheses are for the corresponding period in the previous year

*** Excluding acquisitions, divestments and currency translation effects.

Orkla ASA

Oslo, 5 May 2010

Ref.:

SVP Corporate Communications

Ole Kristian Lunde

Tel.: +47-2254 4431

SVP Investor Relations

Rune Helland

Tel.: +47-2254 4411

VP Investor Relations

Siv M. S. Brekke

Tel.: +47-2254 4455

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

(Norwegian Securities Trading Act)

[HUG#1411864]