Stmnt re Loan Facilities

RNS Number:7923L
Kvaerner ASA
18 October 2001


Kvaerner concludes NOK 500 million agreement for excess funding

LONDON, 18 OCTOBER 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it is in the process of finalising
loan facilities with Den norske Bank and Nordea. The NOK 500 million
facilities will bridge its requirement for excess funding during October.  

According to the Group's current forecast, there will be a further need for
excess funding around the third week of November this year.  Negotiations are
continuing with the banks over a new facility to satisfy this requirement. 
Additionally, it is expected that both the work to establish long-term
financing, and the proposed Rights Issue, will be close to completion at that
time.

Due to the current situation surrounding the Company, a significant level of
uncertainty is attached to the current forecast.  One element of that
uncertainty is the ability of the Company to satisfy the necessary conditions
to enable it to draw down the final part of a previously agreed NOK 800
million facility. This uncertainty may affect the forecast adversly, in the
sum of NOK 170 million.  It is expected that this question will be resolved
within the next couple of days.  Furthermore, the forecast is based on the
assumption that Kvaerner is in a position to utilise all of its available
cash, including the new facility of NOK 500 million, for the financing of any
part of the Group's activities.

The NOK 500 million facility underlines the willingness of the banks to
contribute in the effort to secure the future of the Group.  Negotiations are
also continuing with its main lending syndicate over the creation of a stable
long-term financing arrangement.  It is expected that these negotiations will
be completed by the end of November.

In parallel, the Group is pursuing the preparation of the proposed NOK 1.5 - 2
billion rights issue to be completed by the end of the year.

For further information:  Paul Emberley, Vice President Group Communications,
Kvaerner PLC:  [phone] or [phone] or
[e-mail]