Fred Olsen Energy Sells Treasury Shares

Fred. Olsen Energy ASA has sold 2,623,227 shares of its portfolio of treasury shares. The sale was executed by Carnegie ASA after close of business Thursday February 24, 2005. The shares were primarily placed amongst international and Norwegian institutional investors at a price of NOK 100,- per share. The treasury shares were purchased during 2001/2002 at an average cost price of approximately NOK 41 per share. The sale strengthens the liquidity of the Company's share as the number of shares owned by other than Fred. Olsen & Co.-related companies increases by approximately 12%. The Company's remaining number of treasury shares after the above sale is 111,002 shares, corresponding to the number of management stock options not yet exercised.