Scana — M&A Activity 2015

Feb 2, 2015

Scana Industrier ASA is selling Scana Steel Söderfors AB

Scana Industrier ASA is selling Scana Steel Söderfors AB

Scana Industrier ASA has Friday evening 30(th) January entered into a "Share

Purchase Agreement" with Garden Growth Industries AB part of Appplied Value

Group regarding a sale of Scanas 100% equity share interest in Scana Steel

Söderfors AB. The sale is done through the daughter company Scana Energy Holding

AB in Sweden.

Closing of the transaction will take place Monday 2(nd) February and the new

owner will immediately take full responsibility for daily operation of the

company together with the existing organization, and will take responsibility

for the companys obligations.

Scana Steel Söderfors AB was acquired by Scana Industrier in 1995 and is located

at Söderfors north of Stockholm, Sweden. Söderfors had in 2013 a turnover of NOK

202 million and a loss before tax of NOK 48,5 million.

Proceeds from the sale is SEK 30 million on an Enterprise value (EV) approach,

on a cash and debt free balance at closing. The sale will result in a accounting

loss of approximately NOK 100 million for Scana.

-The sale is part of the activities undertaken by Scana to secure Scanas capital

structure and dispose assets that are considered to be non-core, says CEO in

Scana Industrier ASA, Jan Henry Melhus.

Scana Steel Söderfors has inflicted the Group with significant losses over the

past few years. At the same time the transaction reduce Scanas liquidity and

operational risk.

For further information please contact:

Mr. Jan H Melhus, CEO Scana industrier ASA, Mobile +47 90 16 70 10

Mr. Kjetil Flesjå, CFO Scana Industrier ASA, Mobile: +47 90 04 12 13

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1890879]