Otello Corporation ASA

Share Issue/Capital Change • Nov 17, 2016

Exercise of employee share options and release of employee restricted share units

Exercise of employee share options and release of employee restricted share units

1. Participants in the Company's share option program have on November 16th

2016 exercised 1,567,500 options and 134,702 RSUs, of which 12,500 options were

settled in cash.

Of this amount, 1,211,000 options and 2,948 RSUs are exercised by employees in

the now divested consumer business. These employees were required to exercise

all vested equity grants in this window. In addition, 312,500 options and

25,054 RSUs held by non-consumer employees had already expired, with exercise

held back until the conclusion of the strategic process that led to the

divestment of the consumer business. Finally, 20,000 options and 106,700

RSUs are exercised by former employees of the company. Hence, 98.5% of exercised

options and 100% of exercised RSUs either had to be exercised, or were exercised

by former employees.

Following the share option exercise and release of employee RSUs, the Board of

Directors, pursuant to authorization granted by the Company's Annual

General Meeting, has resolved to increase the Company's share capital by NOK

33,794.04 by issuing 1,689,702 new shares of par value NOK 0.02. Following

the increase the Company's share capital is NOK 2,989,548.58 across a total of

149,477,429 shares.

2. Options exercised and restricted share unites released by primary

insiders November 16th 2016:

Andreas Thome, who is now part of the consumer business, has exercised 520,000

options in the Company, corresponding to 520,000 shares at the strike price of

NOK 34.73. In addition, the primary insider has received 2,948 shares from RSUs

which had already expired, but since no RSU window had been open since prior to

their expiration, the holder was entitled and forced to exercise at this window.

Frode Jacobsen, who is now part of the consumer business, has exercised 7,500

options in the Company, corresponding to 7,500 shares at the strike price of NOK

37.18.

Joakim Kasbohm, who is now part of the consumer business, has exercised 30,000

options in the Company, corresponding to 30,000 shares at the strike price of

NOK 29.15.

Lars Boilesen has exercised 300,000 options in the Company, corresponding to

300,000 shares at the strike price of NOK 18.64, granted in 2010 and which had

already expired, but since no option/RSU window had been open since prior to

their expiration, the holder was entitled and forced to exercise at this window.

In addition, the primary insider has received 15,357 shares from RSUs.

Marianne Blystad has exercised 12,500 options in the Company, which had already

expired, but since no option window had been open since prior to their

expiration, the holder was entitled and forced to exercise at this window, at a

strike price of NOK 23.40 which were settled in cash.

Rian Cochran, who is now part of the consumer business, has exercised 5,000

options in the Company, corresponding to 5,000 shares at the strike price of NOK

26.58.

Will Kassoy has received 6,749 shares from RSUs which had already expired, but

since no RSU window had been open since prior to their expiration, the holder

was entitled and forced to exercise at this window.

3. Transfer of rights and sale of shares

On November 16th 2016, the primary insiders mentioned below transferred their

rights to receive shares resulting from the exercise of options to a third

party.

Andreas Thome has transferred 520,000 rights.

Frode Jacobsen has transferred 7,500 rights.

Joakim Kasbohm has transferred 30,000 rights.

Lars Boilesen has transferred 300,000 rights.

Rian Cochran has transferred 5,000 rights.

When participants receive shares from the RSU program, they will be subject to

pay salary tax on the total value of the shares received. In order to cover such

taxes the employees must at minimum sell a predetermined rate of the shares set

by Opera.

On November 16th 2016 the primary insiders mentioned below ordered for the

received

shares to be immediately sold by a third party.

Andreas Thome has sold 1,386 shares to cover taxes.

Lars Boilesen has sold 8,140 shares to cover taxes.

Will Kassoy has sold 3,510 shares to cover taxes.

The sales amount will be finally determined on the basis of the price

subsequently obtained by the third party selling the shares in the market. Final

compensation for the sale will be reported to Oslo Børs when known.

4. New Holding

After completion of the abovementioned transactions:

Andreas Thome holds no RSUs or options in the Company (27,000 RSUs with future

vesting have been canceled due to the divestment of the consumer business in

which he is now employed). As of today the primary insider holds 13,901 shares

in the Company.

Frode Jacobsen holds no RSUs or options in the Company (27,500 options with

future vesting have been canceled due to the divestment of the consumer business

in which he is now employed). As of today the primary insider holds 248 shares

in the Company.

Joakim Kasbohm holds no RSUs or options in the Company (30,000 options with

future vesting have been canceled due to the divestment of the consumer business

in which he is now employed). As of today the primary insider holds 2,777 shares

in the Company.

Lars Boilesen holds 126,300 RSUs in the Company. As of today the primary insider

holds 30,952 shares in the Company.

Marianne Blystad holds 17,500 unexercised options in the Company at the strike

price of NOK 23.40. Marianne Blystad holds a total of 10,000 shares and, with

family, owns 100% of the shares in the investment company Spencer Trading Inc,

which holds 100,000 shares in the company.

Rian Cochran holds no RSUs or options in the Company (1,500 RSUs with future

vesting have been canceled due to the divestment of the consumer business in

which he is now employed). As of today the primary insider holds 414 shares in

the Company.

Will Kassoy holds 338,167 RSUs in the Company. As of today the primary insider

holds 191,727 shares in the Company.

Petter Lade, Investor Relations

Tel: +47 2369 2400