Prosafe Begins SE Transformation Process

The board of directors of Prosafe ASA has resolved to start the process to transform the company from a Norwegian Joint Stock Public Company (ASA) to a European Joint Stock Public Company (Societas Europea, hereafter called "SE company"). The rationale for the transformation is to achieve flexibility with regards to future localization of the holding company.

The board of directors has based the resolution on the following:

--Three quarters of the company's shareholders are non-Norwegians
--Prosafe ASA is today a holding company for the subsidiaries domiciled and operating in other countries
--The group has limited operations in Norway after the sale of Prosafe Drilling Services in 2005 and the transfer of the company's accommodation/service rigs to Singapore in 2006.

The final decision to transform the company to an SE company will be taken by the company's general meeting. The board of directors aims to present the proposal in an extraordinary general meeting to be held in late December. Neither a transformation to an SE company, nor a subsequent relocation of the holding company, will affect the listing of the company's shares on the Oslo Stock Exchange.