We refer to the press release issued June 15 2005 where it was disclosed that Frontline had entered into an agreement to buy 60 % of the shares in Bergshaven. The transaction was to be executed subject to pre-emption right by Bergshaven’s existing shareholders. It is now evident that the existing holders would use this right to acquire most of the shares. Frontline will thereby not complete the purchase but will receive a financial compensation of approximately USD 6.4 million for initiating the transaction. The compensation will be recorded in the third quarter results.
September 21, 2005