DNO International ASA - Change of currency offer for holders of DNO06, DNO07 and DNO08 bond issues

DNO International ASA announces that substantial bondholders in DNO06, DNO07 and DNO08 have accepted a voluntary offer to exchange existing bonds denominated in NOK for bonds in three separate new issues with USD currency.
 
The three new issues will have the same loan structure as DNO06, DNO07 and DNO08 respectively, but with USD currency and a corresponding additional margin of 0.5 per cent. For detailed information see attached term sheets.
 
The bonds will be exchanged at price of par value (100%) plus accrued interest and the currency exchange rate will be determined at market rates prior to closing. The three new bond issues will have denomination of USD 100 000.
 
Any fractions will be rounded up to nearest USD 100 000. The company hereby also makes a voluntary exchange offer on the same terms to acquire remaining outstanding bonds of DNO06, DNO07 and DNO08, in exchange for bonds in the three new bond issues. The offer is scheduled to expire 8 December, 2008, subject to extension or earlier termination.
 
The current bond issues will prolong according to the current respective loan agreements.  
 
The change of currency offer is made for foreign exchange risk management purposes.
 
Fearnley Fonds ASA is acting as financial advisor to DNO International ASA in connection with the Offer.
 
 
DNO International ASA
27 November, 2008
 
Contact information:
 
DNO International ASA
Haakon Sandborg, CFO
Tel.: +47 23 23 84 80
 
Fearnley Fonds ASA
Thomas Berg-Nielsen
Tel.: +47 22 93 63 51