HNA/HNB - Hafslund ASA reducing ownership in Renewable Energy Corporation ASA

(This is a copy of announcement from Hafslund ASA,

11.05.2010 at 07:01 hours.)

Oslo, 11 May 2010: Hafslund ASA, through its

wholly owned subsidiary Hafslund Venture AS,

("Hafslund") has today agreed to sell 26 million

shares in Renewable Energy Corporation ASA

("REC"), representing approx 3.9 percent of the

outstanding shares. The shares were sold at a

price of NOK 17.75 per share. Following

completion of the sale, Hafslund will hold

50,691,354 shares, representing approx 7.6 percent of

the outstanding shares in REC and thus reduce

its shareholding in REC below the 10 percent

threshold set out in the Norwegian Securities Trading

Act, Section 4-2.

In addition, Hafslund will today exercise its

38,345,677 subscription rights in the REC rights

issue by subscribing for 38,345,677 new shares in

REC. The proceeds from the sale of shares will

finance the shares subscribed for in the rights

issue. Following the completion of the rights

issue, Hafslund will own approx 8.9 percent of shares

and votes in REC.

Christian Berg, CEO of Hafslund,

comments: "Hafslund will continue to be a

long-term owner in REC and has a strong belief in the

company going forward. The purpose of this

transaction is to finance Hafslund's

participation in the ongoing rights issue in REC".

DnB NOR Markets and SEB Enskilda AS acted as

joint bookrunners in the transaction.

Contact person Hafslund ASA:

Christian Berg, CEO, mobile +47 917 46 910

Senior Vice President Venture in Hafslund, Tore

Schiøtz, is a board member in REC.

This information is subject of the disclosure

requirements acc. to §§4-1 and 4-2 of the Norwegian

Securities Trading Act.

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