Stock and press releases

Shareholders in DnB NOR ASA are invited to attend an Extraordinary General Meeting to be held at 10:00 (CET) on Thursday, 19 November 2009 at DnB NOR's premises in Kirkegaten 21, Oslo, Norway. On the agenda is a proposal to conduct a share capital increase by way of a rights offering and amendments to the company's Articles of Association.

Please find attached the Notice of Extraordinary General Meeting in DnB NOR ASA.

Sparebankstiftelsen DnB NOR has sold 18.5 million shares in DnB NOR ASA to finance targeted participation in the DnB NOR rights issue.

Reference is made to the stock exchange notice of 23 October 2009. Sparebankstiftelsen DnB NOR ("Sparebankstiftelsen") has sold 18,500,000 shares in DnB NOR ASA at NOK 68.50 per share. ABG Sundal Collier and DnB NOR Markets were joint bookrunners in the sales process.

After the transaction, Sparebankstiftelsen owns 133,344,864 shares in DnB NOR ASA (~10% of total outstanding shares).

The proceeds from the placing will be used to subscribe for new shares in the upcoming rights issue in DnB NOR.

Contact persons:
Frode Helgerud, CEO, mobile +47 90 51 85 24
Arne Huser, Director Financial Investments, mobile +47 95 75 38 62

DnB NOR recorded profits of NOK 1 760 million in the third quarter of 2009. Compared with the second quarter of 2009, profits were up NOK 1 117 million, while there was a reduction from NOK 2 810 million in the third quarter of 2008.

After minority interests, profits attributable to DnB NOR's shareholders totalled NOK 2 167 million in the third quarter of 2009, compared with NOK 1 200 million in the second quarter and NOK 2 829 million in the year-earlier period.

"DnB NOR's profit figures reflect a rise in income in a still uncertain market situation. There is a positive underlying trend, especially in Retail Banking and Vital. The cost programme has positive effects, and write-downs on loans are within previous estimates. In addition, we are strengthening equity through a NOK 14 billion rights issue later this year, which will make us well positioned for future growth," says group chief executive Rune Bjerke.

Third quarter 2009
· Pre-tax operating profits before write-downs were NOK 5.0 billion (4.4)
· Profit for the period was NOK 1.8 billion (2.8)
· Profit after minority interests was NOK 2.2 billion (2.8)
· Earnings per share were NOK 1.63 (2.12)
· Return on equity was 10.6 per cent (15.5)
· The cost/income ratio, excluding impairment losses for goodwill, was 46.9 per cent (50.6)
· The core capital ratio, including 50 per cent of interim profits, was 7.6 per cent (6.7)
· Upon full implementation of the Basel II IRB system, the core capital ratio will be 8.8 per cent

January through September 2009
· Pre-tax operating profits before write-downs were NOK 14.6 billion (10.5)
· Profit for the period was NOK 5.3 billion (7.3)
· Profit after minority interests was NOK 6.5 billion (7.2)
· Earnings per share were NOK 4.85 (5.39)
· Return on equity was 10.7 per cent (13.0)
· The cost/income ratio, excluding impairment losses for goodwill, was 48.0 per cent (55.6)

Comparable figures for 2008 in parentheses.

Rise in interest and operating income
Net interest income was NOK 5 740 million in the third quarter of 2009, up NOK 49 million from the year-earlier period. There was a NOK 87 million increase in net interest income compared with the second quarter of 2009. Net other operating income amounted to NOK 3 951 million, up 26.1 per cent from the third quarter of 2008.

"Due to the financial market recovery, both DnB NOR Markets and Vital recorded sound profits. Income from payment services also showed a positive trend, while the upturn in the housing market gave a boost in income from real estate broking," says Rune Bjerke.

Stable lending volumes
There was a decline in average lending volumes during the third quarter due to exchange rate movements. Adjusted for exchange rate effects, lending volumes were virtually unchanged from year-end 2008, reflecting a reduction in credit demand.

"During the financial crisis, we have focused on assisting our customers and maintaining sound business relations," says Bjerke.

Write-downs on loans within previous estimates
The effect of write-downs on loans in the income statement was NOK 2 277 million, a slight decline from the second quarter and within estimated write-downs of NOK 8-10 billion for the whole of 2009.

"There was a decline in write-downs in DnB NORD compared with the second quarter. There was a stable level of individual write-downs in other operations, while there was an increase in group write-downs during the quarter. Over the past year, the Group has stepped up its efforts considerably to ensure the value of problem commitments," underlines Rune Bjerke.

Cost reductions
There was a positive cost trend during the quarter, with a NOK 90 million decline in costs from the second quarter. The initiatives to create a more integrated group had significant effects on Norwegian-related operations, while market adjustments reduced costs both in and outside Norway.

Very sound liquidity
Through the swap scheme with Norges Bank, DnB NOR has built up a significant liquidity reserve through 2009. In addition, access to and prices of capital market funding improved considerably during the summer, which gives the Group a sound platform for the future. During the third quarter, Moody's downgraded DnB NOR's credit rating by two notches to Aa3. The corresponding rating from Standard and Poor's is AA-. This places the bank in a small, exclusive group of financial institutions with a double A rating from both large rating agencies and is of great significance with respect to funding opportunities.

Equity strengthening
The core capital ratio, including 50 per cent of interim profits, increased from 7.3 per cent at end-June to 7.6 per cent at end-September. On 24 September 2009, DnB NOR's Board of Directors proposed to strengthen equity by NOK 14 billion through an issue of ordinary shares with pre-emptive subscription rights for existing shareholders.

"The capital increase will make the Group better positioned for stricter capital adequacy requirements while enabling a swifter return to its long-term dividend policy. Moreover, the transaction will enhance the Group's ability to meet customers' future financing needs and to pursue profitable business opportunities as part of its future growth strategy," says Rune Bjerke.

Including capital from the rights issue, the core capital ratio would have been 11.4 per cent at end-September 2009 based on full implementation of the new capital adequacy regulations and including 50 per cent of interim profits.

Sustainable development
During the third quarter of 2009, DnB NOR qualified for inclusion in the Dow Jones World Sustainability Index, which means that the Group is regarded as being among the top 10 per cent within its industry worldwide in terms of sustainability with respect to economic, environmental and social factors.

Contact person:
Trond Bentestuen, group executive vice president, Marketing and Communications,
tel.: +47 950 28 448

This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act").

The Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnbnor.com

Annual accounts 2009 (preliminary figures): 11 February
Annual General Meeting 2009: 27 April
Ex-dividend date: 28 April
First quarter 2010: 29 April
Second quarter 2010: 9 July
Third quarter 2010: 28 October

The Board of DnB NOR proposes to strengthen its equity capital base by NOK 14 billion through an issue of ordinary shares with pre-emptive subscription rights for existing shareholders (the "Rights Issue"). The Rights Issue is supported by DnB NOR's largest shareholders and underwritten by a syndicate of banks. After completion of the Rights Issue, the Tier 1 ratio will increase to 11.3 %*.

Rune Bjerke, CEO, commenting on the transaction, said: "This transaction will enhance our ability to meet our customers' future financing needs while making us better prepared to satisfy anticipated higher capital adequacy requirements in the banking sector. In addition, it will enable a swifter return to our long-term dividend policy."

"The State Finance Fund has played a crucial role during this unstable period. Today, the equity market is preferable to DnB NOR as it ensures access to permanent capital, equal treatment of all our more than 45 000 shareholders and offers common equity on competitive terms."

To better capture future opportunities, DnB NOR's management and Board consider it to be in the best interests of the company's shareholders to strengthen the equity capital base in order to:

· Proactively meet customers' future financing needs: We will be better able to meet customers' long-term financing needs, even in light of future stricter capital adequacy requirements. A stronger capital position will ensure greater lending capacity and will strengthen DnB NOR's competitive position.

· Pursue profitable business opportunities: The Rights Issue will enhance DnB NOR's ability to pursue profitable business opportunities as part of DnB NOR's future growth strategy.

· Be well positioned for future stricter capital adequacy requirements in the banking sector: DnB NOR anticipates increasing capital requirements from regulators and rating agencies. The proposed Rights Issue will help strengthen DnB NOR's long-term capital position in advance of the anticipated changes.

· Swifter return to long-term dividend policy: The capital increase will allow DnB NOR to resume dividend payments sooner in accordance with its long-term dividend policy.

Transaction highlights
· DnB NOR's largest shareholder, the Norwegian government, represented by the Ministry of Trade and Industry, owns 34.0 % of the outstanding shares and is supportive of DnB NOR's action to strengthen its capital base. The government will put forward a parliamentary proposition to participate for its pro rata share of the Rights Issue.

· The Savings Bank Foundation (Sparebankstiftelsen DnB NOR) is supportive of the Rights Issue and has entered into an agreement to underwrite and subscribe for NOK 500 million, and aims to maintain an ownership percentage in DnB NOR of above 10% after the transaction.

· The National Insurance Fund (Folketrygdfondet) (3.8 % ownership) is supportive of the Rights Issue and has entered into an agreement to underwrite and subscribe for its pro rata share of the Rights Issue.

· The remaining part of the Rights Issue is underwritten by Morgan Stanley and Citi, subject to customary terms and conditions and to the Norwegian government subscribing to its pro rata share.

· The Rights Issue is subject to approval by an extraordinary general meeting that is currently planned for the second half of November 2009. The subscription period will commence shortly thereafter. The issue price will be set immediately before the EGM.

· Morgan Stanley, DnB NOR Markets and Citi are acting as Joint Global Coordinators and Joint Bookrunners for the Rights Issue. Arctic Securities is also acting as an advisor to DnB NOR in the process.

DnB NOR currently has a strong financial position and meets all regulatory capital requirements with substantial margins. After the Rights Issue, DnB NOR's pro forma Equity Tier 1 ratio after full IRB implementation will be 10.2 % and the Tier 1 ratio 11.3 %. Issuing ordinary shares conforms with the key measures put forward by the Basel Committee on Banking Supervision earlier this month that "the predominant form of Tier 1 capital must be common shares and retained earnings".

It is important for DnB NOR to secure fair treatment of its shareholders and maintain a broad shareholder base. The proposed capital measures provide a fair and transparent market solution for all shareholders and special measures will be taken to ensure full information to the company's retail shareholders and to make it easy for them to participate in the Rights Issue or sell their rights.

Indicative timeline
DnB NOR's largest shareholder, the Ministry of Trade and Industry, will seek parliamentary approval to enable it to participate in the Rights Issue. This is expected to be obtained during the second half of November 2009. DnB NOR will call for an extraordinary general meeting expected to be held shortly after such parliamentary approval in the second half of November 2009 and the subscription period will commence shortly thereafter. It is currently expected that the Rights Issue will be completed by mid-December 2009.

Press and analyst conference
A press conference (in Norwegian) will be held today at 09.00 CET at DnB NOR's headquarters in Oslo. The press conference will also be published as a live webcast. To attend the live webcast, please log on to www.dnbnor.com. A recording of the press conference will be available at www.dnbnor.com.

International telephone conference for analysts and the press
At 11.00 CET an international telephone conference (in English) will be held for analysts and the press. To participate, please dial +47 800 80 119 or +47 23 00 04 00 no later than 10.50 CET.
The teleconference is not intended for journalists located in the US.

Information available online
The announcement presentation and the press release will be made available on the rights issue web site, accessible for eligible investors through the DnB NOR web site. During the rights issue period, this website will be updated with information and documentation relevant to the rights issue. Please visit www.dnbnor.com.

• Pro forma Tier 1 ratio after full implementation of IRB including 50% of profits for the period.

For further information, please contact:

Bjørn Erik Næss, CFO, tel. +47 415 05 201, e-mail [email protected]

Per Sagbakken, EVP, Investor Relations, tel. +47 906 61 159, e-mail [email protected]

Trond Bentestuen, EVP, Corporate Communications, tel. +47 950 28 448,
e-mail [email protected]

Disclaimer

These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), Canada, Australia, Japan or Hong Kong. These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act").

The Securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States."

The issue, exercise or sale of subscription rights ("Rights") and the subscription or purchase of DnB NOR shares or Rights are subject to specific legal or regulatory restrictions in certain jurisdictions. DnB NOR assumes no responsibility in the event there is a violation by any person of such restrictions.

This announcement is an advertisement. It is not a prospectus, disclosure document or offering document and does not purport to be complete. Nothing in this announcement should be interpreted as a term or condition of the Rights Issue. Investors should not subscribe for, purchase, otherwise acquire, sell or otherwise dispose of nil paid rights, fully paid rights and/or ordinary Shares except on the basis of information in the prospectus to be published by the company in due course in connection with the Rights Issue which will contain further information relating to the company as well as a summary of the risk factors to which any investment is subject. (the "Prospectus"). The Prospectus will, following publication, be available on the rights issue website at www.dnbnor.com. This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any securities offered by any person in any jurisdiction in which such an offer or solicitation is unlawful.

This document has not been approved by any regulatory authority. This document is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this document except on the basis of information provided in the prospectus to be published by DnB NOR on its website in due course.

The distribution of this announcement and/or the Prospectus into jurisdictions other than Norway may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Morgan Stanley & Co. International plc. DnB NOR Markets and Citigroup Global Markets Limited are acting for DnB NOR and no one else in connection with the Rights Issue and will not be responsible to anyone other than DnB NOR for providing the protections afforded to their respective clients or for providing advice in relation to the Rights Issue and/or any other matter referred to in this document.

Forward-looking statements

This document and any materials distributed in connection with this document may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect DnB NOR's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the risks and uncertainties to be set out in the prospectus.

DnB NOR has qualified for inclusion in the prestigious Dow Jones Sustainability World Index (DJSI World). This means that DnB NOR is regarded as being among the top 10 per cent within its industry worldwide in terms of sustainability.

"DnB NOR is committed to corporate social responsibility and environmental issues. The fact that we have now been included in this recognised sustainability index represents a milestone for the Group and a recognition of our long-term environmental and social performance," says Rune Bjerke, DnB NOR's group chief executive.

DJSI World comprises the leading companies in terms of sustainability around the world. It captures the top 10 per cent within each industry based on long-term economic, environmental and social criteria out of the biggest 2 500 companies worldwide.

DnB NOR is one of five Norwegian companies included in the index, which is an important tool for investors and other stakeholder groups wishing to assess non-financial aspects of companies' operations.

DnB NOR will be included in the Dow Jones Sustainability World Index (DJSI World) with effect from 21 September 2009.