HURTIGRUTEN ASA SELLS FERRIES AND FAST FERRIES OPERATION

24 - 10 - 2008

Hurtigruten ASA has entered into an agreement with Torghatten Nord AS, a wholly owned subsidiary of Torghatten Trafikkselskap ASA, regarding the sale of the ferry and fast ferry operation. The agreement covers 45 vessels and affects 606 employees in Nordland and Troms.

The agreement covers Hurtigruten ASA’s ferry and fast ferry operations with the exception of four route contracts and five associated fast ferries in Troms County, which will continue to be operated by Hurtigruten ASA until the agreement with the county expires on 31 December 2009.

The acquiring company is Torghatten Nord AS, wholly owned by Torghatten Trafikkselskap ASA in Brønnøysund.

The agreement reduces Hurtigruten ASA’s net debt by NOK 488 million and results in an accounting loss of about NOK 103 million.

“The sale will help Hurtigruten ASA to reduce its net debt by NOK 488 million. At the same time we are pleased to have arrived at an agreement that ensures sound operations and further job security for the employees. That has been an important consideration for Hurtigruten,” says Olav Fjell, CEO of Hurtigruten ASA.

The takeover covers 606 employees: 571 sea-based personnel including 22 apprentices and 35 employees on shore. All employees of operations that are being taken over will have the opportunity to continue working for the new company.

Torghatten Trafikkselskap ASA has been engaged in transport activities since 1878 and looks forward to the expansion, which will make the company the largest public transport company in that part of the country. A separate company, Torghatten Nord AS, has been established to handle operations in Troms and Nordland counties.

“We think this is exciting, and have long considered expanding our business. Through the purchase we will to continue to provide good service for passengers and contribute to the further development of public transport in Troms and Nordland. The purchase is a good strategic and industrial fit for us. Furthermore, we favour local control and, not least, are committed to the communities we serve. A separate limited company has therefore been set up to run the business,” says Brynjar Forbergskog, CEO of Torghatten Trafikkselskap ASA.

Subject to Norwegian Competition Authority approval, the takeover will be formalised on 5 January 2009.

Hurtigruten ASA