Outlook

Statkraft is a leader in renewable energy in Europe with production and trading both in the Nordic region and in Continental Europe. Through SN Power, the Group has established a solid foothold within renewable energy in South America and Asia.

Substantial uncertainty remains as regards the activity level in the power-intensive industry, both in the Nordic countries and on the Continent. Forward prices for 2010 indicate a somewhat higher price level than in 2009. Little precipitation in the fourth quarter of 2009 and at the beginning of 2010 indicates that the hydropower production may be somewhat lower in 2010, while the current price situation for gas could provide a basis for slightly higher gas power production. The organisation has been strengthened in 2009 as a result of the large number of new projects. Overall, the result for 2010 is therefore expected to be on a par with 2009.

Statkraft has developed a major portfolio of projects which support the Group's threefold strategy; industrial developer in Norway, European flexible power producer and green global developer. This strategy supports Norway's environmental ambitions, the EU's climate goals and the need for a sustainable development facing countries in South America and Asia. The current market is still characterised by the effects the financial crisis has had for many players. This paves the way for some interesting opportunities for Statkraft, with its strong industrial position.

The majority government's political platform, presented in October 2009, stated the following: ”the government will facilitate Statkraft's further development as a driving force within renewable energy”.

On 4 February 2009, the board presented Statkraft's strategic platform with the associated financial plan to the Ministry of Trade and Industry in the form of a recommendation for strengthened equity and reduced dividend levels. It is of great importance to the company to achieve clarification as regards the capital situation.

The Board of Directors of Statkraft AS

Oslo, 17 March 2010