The agreed exchange ratio is based on the average closing prices at the Oslo Stock Exchange for the Kværner and Aker shares in the period from 11 August to 24 August inclusive. This period includes five trading days before and five trading days after the merger negotiations were announced.

The Boards of both companies note that Kværner and Aker have presented their financial results for the first six months of 2005 in the period, and that the merger negotiations were known to the market. Further, it is noted that the liquidity in both the Kværner and Aker A-shares have been satisfactory. Aker A-shares for almost NOK 700 million and Kværner shares for approximately NOK 500 million have been traded in the 10-day period.

Based on this, the Boards are of the opinion that relevant and share-price sensitive information has been available to the market and that the share-prices in the period are a reasonable basis for the exchange ratio in the transaction.

Merger rationaleThe merger proposal was presented and the background described in a joint statement from the companies on 17 August 2005. The main reasons for the merger were given as follows:? Through the merger, Aker will maintain its strong liquidity situation, as the merger will eliminate liabilities related to the previous purchase of Aker American Shipping ASA. Consequently, Aker will have the possibility to make a cash payment to the shareholders. ? By integrating Kværner into Aker, savings will be achieved in relation to the two parent company structures which now exist, as well as a simplified ownership structure without cross-ownership. The Boards expect that such simplification will be appreciated by the market.? Over the past year, Kværner has significantly simplified the company and made its value clearer. This process has been totally in line with the company`s stated strategy and the merger will bring the work of realising the values to a conclusion.

Next stepsExtraordinary general meetings in both Kværner ASA and Aker ASA will be held on 29 September 2005. The shareholders in Kværner ASA will consider the board`s proposal to merge Kværner ASA with Aker Maritime Finance, a wholly owned subsidiary of Aker ASA. Aker ASA`s shareholders will consider a proposal for the issue of new shares and a payment of dividend of NOK 14 per share. The dividend is conditional upon the merger, and will be paid after Kværner shareholders have received their Aker A shares as settlement in the merger. Notice of the meetings will be sent to the shareholders with known address and mailed at the latest 14 days before the extraordinary general meetings.

A dividend payment as proposed by the Aker Board will trigger an offer to redeem outstanding bonds, pursuant to the loan agreement for Aker`s AKE16 listed bond loan.

As a direct party to the merger agreement, Kværner ASA will send the merger plan with appendices to all its shareholders on 29 August 2005. The merger plan will also be made available to the market at the Oslo Stock Exchange and on Kværner ASA`s website.

With the notice of the extraordinary general meeting, Kværner ASA`s shareholders will also receive a prospectus with detailed information on the merger proposal they will decide on at the shareholders` meeting.

In the period leading to the general meetings, the parties have a right to conduct a mutual due diligence. The Due Diligence, together with other provisions, is closely accounted for in the merger plan and the prospectus mentioned above. It is the intention of both companies to execute the merger, distribute Aker A shares to Kværner shareholders and pay the dividend within this year.

Information on Kværner ASAAccording to the Norwegian Stock Exchange regulations, this merger announcement should include the following closer description of Kværner ASA. The company`s main assets are a 49 per cent holding in Aker ASA and a 20 per cent holding in Sea Launch.

Aker ASA is the parent company in an industrial group with over 41 000 employees and revenues of almost NOK 60 billion. Aker has majority interests in amongst other, Aker Kvaerner, Aker Yards, Aker Seafoods, Aker American Shipping and Aker Material Handling. More information on Aker can be found in the company`s annual report and website.

Established in 1995, Sea Launch is the only company in the world that launches commercial satellites into space from a mobile floating platform. The demand for its services is growing somewhat in a fiercely competitive global market. In 2004 three satellites were launched. The same number has so far been launched in 2005. Kværner ASA has provided guarantees of USD 181 million (about NOK 1,2 billion) relating to loans to Sea Launch from third parties and advance payments from clients relating to ongoing contracts.

Financial highlightsThe results for Kværner ASA in the last two accounting years, together with the latest published interim report, are enclosed. Preliminary pro forma figures for the merged business for the last accounting year, and half-year figures for 2004 and 2005 are also enclosed.