Saipem to Make Mandatory Offer for Frigstad

On October 19, 2007, Saipem S.p.A. made a notice regarding the acquisition of 10,753,620 shares in Frigstad Discoverer Invest Limited at NOK 82 per share. Additional 9,052,010 shares have been acquired at NOK 82 during the period October 19-22, 2007, and given notice of today. As a result of the transactions, Saipem holds 19,805,630 shares in Frigstad, corresponding to 92.12% of all issued and outstanding shares in the company.

Saipem will subsequently make a mandatory offer for all outstanding shares of Frigstad at the same price (NOK 82 per share). The offered price represents a premium of 116% related to the last traded price and a premium of 78% to the volume weighted price since the listing of Frigstad on the Oslo Bors in April 2007. Furthermore, the offer price represents a premium of 24% and 53% to the issue price in the private placement completed in March 2006 in NOK and USD, respectively. The Offer implies a total value for the entire issued share capital of Frigstad of approximately NOK 1.8 billion.

The offer document, setting out the terms and conditions of the Offer, will be presented as soon as reasonably practicable and within four weeks, as required.

Saipem reserves the right to acquire additional shares in Frigstad in the market both before and during the offer period for the Offer.

The acquisition is in line with Saipem's strategy to broaden its offshore drilling fleet, in order to take advantage of the current positive market phase. Saipem's overall investment, including the purchase of the shares in Frigstad and the capital expenditures required to complete the drilling rig, is estimated at approximately EUR 520 million.

ABG Sundal Collier is acting as financial advisor to Saipem.

Saipem, 43% owned by Eni, is organized in three Business Units: Offshore, Onshore and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater.


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