Sinvest ASA De-merger Plan Approved by Board

The Board of Sinvest today approved the de-merger plan, which will be sent to all shareholders. It will be presented for approval by the shareholders in the ordinary general meeting scheduled for June 30, 2006.

The rationale of the de-merger is to focus the strategy of the Company: One company will focus on the Company's investment in jackup drilling rigs, while the second company will focus on strategic and financial investment opportunities within the oil and gas industry, based on the Company's shares in Venture Drilling AS, which operates the drill ship 'Deep Venture'.

Following the de-merger, the existing company, which will change name to Deep Drilling Invest ASA, will be a pure jackup drilling rig company. Deep Drilling Invest ASA will thus own the two jackup drilling rigs that have been delivered, the six jackup drilling rigs under construction, the shares in Premium Drilling AS (50% ownership interest, together with Awilco Offshore ASA holding the remaining shares in this management company for jackup drilling rigs) and Beta Drilling AS (100% ownership interest in a company having bare boat chartered the jackup drilling rig 'Murmanskaya'), as well as the Company's shares in Petrojack ASA, equivalent to approx. 18% of the shares in that company. All financial debt taken up by the Company will remain with Deep Drilling Invest ASA.

The new company will assume the Sinvest name and continue the strategy of Sinvest, and will have contributed to it assets valued at NOK 1,135 million, consisting of the Company's shares (50%) in Venture Drilling AS (which has the drill ship 'Deep Venture' on bare boat charter), its 500,000 shares in Awilco Heavy Transport ASA, various minor assets, as well as cash.

The shareholders of Sinvest ASA will have the same ownership interest in both companies, and it is anticipated that the de-merged company will stay on as a listed company. The current board members of Sinvest ASA will continue to serve as board members of both companies.

Completion of the de-merger, including listing of the shares in the new company, is expected to occur during September 2006.

The Company is preparing a disclosure statement in accordance with item 3.3 of the Oslo Stock Exchange rules, relating to the assets to be de- merged.