Cecon Completes Private Placement

Cecon ASA has completed the private placement it announced on June 12, 2007.

The company raised gross proceeds of NOK 285 million by issuing a total of 19,000,000 new shares at a subscription price of NOK 15 per share.

The purpose of the private placement is to fund the equity portion of the third Vik Sandvik VS4220 Offshore Construction Vessels. The vessel will be built with Davie Yards ASA with delivery scheduled for Q4 2009.

The vessel will be equipped with a 400-metric-tonne offshore crane, rated for 4000 meters water depth, and will otherwise be equal to Cecon's first two vessels (currently under construction). The vessels are 130 meters long with a deck area of 2,000 sqm, DP Class 3, 100 man accommodations and a maximum transit speed of 16.5 knots, considered important for global operations in order to minimize mobilization time. The total estimated project cost for the contract is USD 143 million, which includes an increment of approx USD 10-12 million for the larger crane.

Total number of shares outstanding post private placement will be 70,666,000 shares implying a post-issue market capitalization of Cecon of NOK 1.059 billion.

In connection with the placement, the board of Cecon has also decided to propose that an extraordinary general meeting of the company issue 5.5 million shares at NOK 15 to Davie Yards AS and Vik-Sandvik AS as part payment for the vessel, corresponding to NOK 82.5 million. Notice for such general meeting will be distributed to the company's shareholders as soon as necessary documentation has been prepared. Subject to such issue being resolved, the total number of shares outstanding will be 76,166,000 shares implying a market capitalization of Cecon of NOK 1.142 billion.

On May 23, 2007, the Board of Directors of Oslo Bors resolved in a board meeting to grant admission for Listing on Oslo Axess. Barring unforeseen circumstances, the first day of trading for the Shares on Oslo Axess, is expected to be on or about June 26, 2007. The Shares will be listed on Oslo Axess under the ticker symbol "CECON."

The private placement of shares was managed by Pareto Securities ASA.

In connection with the Private Placement, the primary insider Arve Andersson, (Chairman), has been allocated 30,000 shares at NOK 15 through his company ArvAnder AS. After this, Andersson owns 30,000 shares.


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