Stmnt re Group Review

RNS Number:9866L
Kvaerner ASA
23 October 2001

Kvaerner sees increased provisions and write-down of asset values

LONDON, 23 OCTOBER 2001: The Board and management of Kvaerner are currently
conducting a thorough review of the Group's performance and results.  In this
connection, a detailed assessment is being undertaken of the book value of the
Group's investments and financial assets to provide necessary input to the
documentation being prepared for the proposed Rights Issue.

Further to what the Board has previously said about deteriorating results in
E&C and Pulp & Paper in the third quarter, the Board has determined in its
meeting on 22 October, that it would be appropriate to increase provisions
made in the second quarter for previously announced disputed projects in E&C. 
The additional provision is expected to be in the range of NOK 450 million. 
The Board also expects that it will be prudent to write-down the book value of
some items in the Group's balance sheet related to investments made in the
period from 1995 to 1998.  The Board has not yet been provided with all the
necessary information to determine which items are to be affected, or the
total amount of write-downs to be made, but it anticipates that these will be
substantial.  The final amount will be announced at the presentation of the
Group's third quarter results on 1 November this year.  

Write-downs and provisions will have an accounting effect in the third
quarter, but will not have a cash effect that will impact on the Group's
short-term liquidity position.

For further information: 
Paul Emberley, Vice President, Group Communications, Kvaerner PLC: +44 (0)20
7339 1035 or [phone] or [e-mail] 

Notes to editors:
Kvaerner is a world-class Anglo-Norwegian engineering and construction Group. 
It meets the needs of its customers by adding value to their business -
through the provision of innovative, cost-effective solutions - for challenges
in the hydrocarbons, process and metals industries.  The Group's activities
are currently organised in two core business areas: E&C (Engineering and
Construction), and Oil & Gas.  Kvaerner is a Norwegian registered business,
but has a London, UK-based international headquarters.  The Group has annual
revenues in excess of US$6 billion, with some 35,000 permanent staff located
in almost 35 countries throughout Europe, Africa, Asia and the Americas.