Sevan Announces Directed Share Issue, Secondary Placement

Sevan Marine ASA has retained SEB Enskilda ASA and Pareto Securities AS to advise on and effect a contemplated share issue directed toward professional domestic and international investors.

The contemplated share issue will amount to a maximum of 14.6 million new shares or approx. 10% of the existing outstanding shares of the Company, at a subscription price of NOK 50.75 with gross proceeds of approx. NOK 740 million. Any such new shares will be issued according to the board proxy established at the annual general meeting on May 4, 2006. Larger institutional and long-term investors will be preferred. In addition primary insiders will offer up to 830,000 secondary shares, representing approx. 5.8% of these shareholders` current holdings.

The proceeds of the transaction will be used to part-finance the Company's construction program. The Company currently has three Sevan production units and one Sevan drilling unit under construction and has recently ordered two additional production units; one Sevan 300 and one Sevan 650.

The Company`s first production unit, the SSP Piranema, was last week accepted by Petrobras. The unit will be deployed on the Piranema Field off the coast of Brazil, under an 11+11 year charter contract with Petrobras.

The shares offered and subscribed in the private placement will be settled by way of transfer to the subscribers upon payment of already listed shares made available for the Managers by existing shareholders, including the primary insiders Arne Smedal, Jan Erik Tveteraas, Kaare Syvertsen Aslak Hjelde and Alf-Roger Skikstein (and/or companies controlled by them) (the "Lenders") based on a standardized Stock Lending Agreement between the Managers and the Lenders, under which the Lenders receive no compensation. Accordingly, all shares offered in the private placement are tradable immediately after delivery to the investors. The shares borrowed from the Lenders will be returned by and upon the issue of new shares.

The private placement is subject to the approval of the Sevan board of directors.

Sevan Marine ASA is a Norwegian company listed on Oslo Bors with its own unique technology for floating production, storage and drilling. Sevan`s technology is developed for applications in offshore oil and gas field developments. The cylindrical hull form has a significant competitive edge when compared to traditional type floaters. Sevan Marine has offices in Tananger, Arendal, Asker and Trondheim, Norway; Singapore and Rio de Janeiro, Brazil.