PROPOSED RIGHTS ISSUE

As described in the report for the 4th quarter of 
2010, Blom is in discussions with the bondholders in 
its bond loan "FRN Blom ASA Senior Secured Bond Issue 
2009/2012". These negotiations have had a positive 
development, and the aim is a solution which will 
ensure a satisfactory liquidity and a sound financial 
basis for the company. A solution will include the 
following elements which will require resolutions by 
the company's general meeting:
 
- As part of a solution Blom shall seek to raise at 
least NOK 50 million in new equity, and

- If Blom does not succeed to obtain subscriptions 
for such new equity by 30 April 2011, then NOK 50 
million of the bond loan will be converted to a 
convertible loan, provided, however, that if it 
becomes clear prior to 30 April that a rights issue 
in this amount will not be completed, then the 
conversion will take place at such earlier time.

Based on these discussions the board of directors of 
Blom has today resolved to call for an extraordinary 
general meeting to be held on 18 March 2011. The 
board of directors has resolved to propose that Blom 
carries out a rights issue of new shares with gross 
proceeds of approx. NOK 50 million. The number of new 
shares to be issued in the share capital increase 
will depend upon the subscription price which will be 
set in connection with the extraordinary general 
meeting.

The board of directors also proposes that Blom take 
up a convertible loan of NOK 50 million. This loan 
will be taken up by way of a conversion of NOK 50 
million of its existing bond loan referred to as "FRN 
Blom ASA Senior Secured Bond Issue 2009/2012". The 
loan will only be taken up if the rights issue is not 
successful. 

When a final proposal for a solution with the 
bondholders is available it will be made public 
through a stock exchange notice. 

Please find attached the Notice of Extraordinary 
General Meeting.

This information is subject to the disclosure 
requirements according to Section 5-12 of the 
Securities Trading Act.

For further information please contact the CEO, Dirk 
Blaauw, on tel. +47 22 13 19 20.