UPDATE ON FINANCIAL SITUATION

Blom has had a very challenging fourth quarter. Blom 
expects to report an operating loss of 176 million 
NOK for the quarter. As a result of poor operating 
performance and deteriorating macro-economic 
conditions in several of the countries where Blom 
operates, EBIT is charged with write downs of 158 
million NOK. In addition, the Board has decided to 
make additional write downs, primarily of financial 
assets and deferred tax assets, in total of 104 
million NOK. Consequently the company's equity is 
lost.

Blom is working actively with a proposal for 
restructuring the company's balance sheet to create a 
sound financial basis for further operations. A 
constructive dialogue with a majority of bondholders 
has been initiated to establish a more long term 
solution of the company's debt structure. The company 
expects to have sufficient liquidity until a solution 
has been established.

The Board has decided to engage a financial advisor 
to assist the company in the process of restructuring 
the capital structure. The mandating of a financial 
advisor is expected to be made shortly. 

This information is subject to the Securities Trading 
Act § 5-12.

For further information please contact:
Dirk Blaauw, CEO Blom ASA, at tel: +47 22 13 19 23 or 
Lars Bakklund, CFO Blom ASA, at tel: +47 22 13 19 3