Orkla ASA — M&A Activity 2010

Oct 25, 2010

Orkla sells forests to Statskog

We refer to earlier communications regarding the sale of Orkla's forests.

Orkla is selling the wholly-owned forest companies Borregaard Skoger AS,  AS

Børresen and Borregaard Vafos AS to Statskog for a total of NOK 1 725 million

after a broad process with strong competition and a number of  attractive offers

.  The sale covers approximately 1.1 million decares, of which around 750 000

decares are productive forest land. The transaction also encompasses Borregaard

Skoger's equity interest in Statskog-Borregaard Skogsdrift (SB Skog).

The transaction is subject to approval by Stortinget (the Norwegian

Parliament).  Completion of the transaction also assumes approval by the

Norwegian Competition Authority.

Contact persons:

Rune Helland, Tel: +47 22 54 44 11

Roar Engeland, Tel: +47 926 53 197

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

(Norwegian Securities Trading Act)

[HUG#1454743]