KVR Kvaerner Asa

RNS Number:3469K
Kvaerner ASA
20 September 2001


Kvaerner Rights Issue

LONDON, 20 SEPTEMBER 2001: Kvaerner ASA, the Anglo-Norwegian engineering and
construction Group, said today that in connection with yesterday's
announcement from the Company, it has added the following details:

- The proposed share issue will be a Rights Issue with preferential rights for
existing shareholders.  Work is ongoing to establish a consortium to guarantee
full subscription.

- The short-term NOK 900 million facility to secure the Group's need for
liquidity consists of NOK 800 million provided by a consortium of the Group's
leading banks and NOK 100 million provided by Aker Maritime ASA on the same
terms.  The loan will be repaid through a new facility which presently is
being negotiated with the Group's leading banks and which is expected to be in
place during the first part of October.

- The loan is established as a US$ facility of 101.290.000 million.  Interest
terms are LIBOR plus 1.25 per cent to 4.25 per cent, depending on the
draw-down of the facility, with 4.25 per cent being applicable for draw-down
in excess of US$ 67.500.000.  In addition, the providers charge a management
fee of 3 per cent. Additional terms are essentially the same as for the
Group's other loan facilities.

- Additionally, Folketrygdfondet recently provided a loan certificate of NOK
250 million.

The reasons for the sudden short-term liquidity need, can be summarised as
follows:

- For a period of time the Company had negotiated a loan facility with an
international bank which would have satisfied the Group's need for liquidity. 
Kvaerner had reason to believe that this facility would be secured.  The
facility was considered by the bank's credit committee on the 12 September
2001.  The committee decided, however, not to approve the facility.

- The Group subsequently opened a dialogue with other leading banks and this
gave reason to believe that the short-term financing requirements would be
covered.  On the morning of 17 September 2001 it became evident that the banks
were expressing a desire for a share issue as part of the long-term financing
referred to in yesterday's announcement.

- Thereafter, the Company asked the Oslo Stock Exchange and the London Listing
Authority to suspend the share from trading until a solution had been found in
co-operation with the Group's leading shareholders and banks.  A 'matching
halt' was introduced by the Oslo Stock Exchange until the share was finally
suspended before trading opened on Tuesday 18 September 2001.

Kvaerner has today again asked the Oslo Stock Exchange to suspend the share in
the expectation of announcing a guarantee consortium that is being
established.  So far, the Stock Exchange has not been willing to meet this
demand, but has expressed the view that this request is under consideration.


For more information:  Paul Emberley, Vice President Group Communications: +44
(0)20 7339 1035 or  +44 (0)7768 813090.

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