Orkla ASA

Wall Street closed flat overnight after Federal Reserve Chairman Ben Bernanke said the interest rate would be hold at low for an extended period due to the subdued economy and low inflation.

Orkla ASA (OSL:ORK) Reference is made to the stock exchange release of 5 November 2008 regarding Shares for Employees 2008.

Orkla ASA (OSL:ORK) Employees in 26 countries have been offered the opportunity to buy Orkla shares at a discount for the amount of NOK 4 000, NOK 12 000, NOK 20 000 or NOK 28 000. This year the discount was increased from 20 % to 25 %. The purchase price will be set at Orkla's closing price at 12 November 2008, minus the 25 % discount. The offer is valid from 3 - 11 November 2008. This programme was introduced in 1999.

Orkla ASA (OSL:ORK) As mentioned in its annual reports for 2006 and 2007, Orkla has proceeded on the basis that the gain realised in 2006 on the option element of convertible bonds in Renewable Energy Corporation ASA (REC) is tax-free according to the exemption method. As disclosed in Note 21 in Orkla's annual report for 2007, the Central Tax Office for Large Enterprises (SfS) announced that it is considering changing the tax assessment for 2006 and imposing a 28 % tax on the entire gain. Orkla has now received a draft decision by the SfS whereby it maintains full taxation and assesses the value of each REC share at the date of conversion in early March 2006 at NOK 81.50.

Orkla ASA (OSL:ORK) Orkla's operating profit (EBITA)1 for the third quarter ended at NOK 1,003 million, compared with NOK 1,232 million in the corresponding quarter of 2007. The difference is partly ascribable to weak results from energy trading and one-off costs related to the Kam Kiu acquisition, which was not completed. Orkla Brands continues its positive profit performance, while Sapa is feeling the effects of the decline in both the US and Europe. Weak financial markets are impacting negatively on Orkla's Financial Investments area.

Orkla ASA (OSL:ORK) Orkla will report third quarter results 2008 on Friday 31 October 2008 at 7.00 a.m.

Orkla ASA (OSL:ORK) On 24 April 2008 the Annual General Meeting of Orkla adopted to reduce the company`s share capital by NOK 9,375,000 by redeeming (amortising) 7,500,000 of the shares owned by Orkla ASA.

Orkla ASA (OSL:ORK) Orkla will report third quarter results 2008 on Friday 31 October 2008 at 7.00 a.m.

Orkla ASA (OSL:ORK) Borregaard intends to close its pulp mill in Switzerland. During recent years the business has experienced financial losses, and is now in a demanding situation both regarding its cost position and market conditions. The outlook for the company indicates continued losses, and therefore a process to close the mill in December of this year has been initiated.

Orkla ASA (OSL:ORK) Bjørn Wiggen will become a member of Orkla's Group Executive Board with responsibility for the Orkla Materials business area, which comprises Elkem and Borregaard. Per Sørlie will continue as Managing Director of Borregaard. Mr Wiggen will also serve as Acting Managing Director of Elkem, as the parties have reached agreement on Helge Holen's resignation.