Q1 results 2010: Operations improving

HIGHLIGHTS 1ST QUARTER 2010:

The company changed its name from Scandinavian Property Development ASA (SPDE) to Fornebu Utvikling ASA (FBU) on 1 February 2010.

Positive development in the market value of residential and commercial properties in Norway resulted in a reversal of previous write-downs of NOK 56.9 million in the quarter.

The residental projects Hundsund Niels Torp, phase 1 and Fornebu Hageby, Section 1 were finished in the fourth quarter of 2009, and 24 apartments were handed over to buyers during the first quarter of 2010. A further 3 apartments were sold during the quarter and will be handed over in a subsequent period. In total respectively 68% and 80% of the apartments in the projects were sold as of 31 March 2010.

The financing and board reservations concerning the offer to unitholders at Fornebu to purchase their units have been lifted. Unit holders representing 420 units, out of a total of 476 units, have accepted the offer. The buyout will be completed on 1 June 2010.

A final agreement has been signed with Veidekke Eiendom AS for the establishment of the company Veifor AS, with 50/50 ownership, for the development of more than 300 housing in central Fornebu. Sales are scheduled to start in 2011.

Repayment of loans with NOK 507 million during the quarter. New construction loans drawn with NOK 109 million.

Kanalpiren at Hinna in Stavanger was sold on the basis of a property value of NOK 410 million.

The full report and presentation can be downloaded from www.fornebuutvikling.no <http://www.fornebuutvikling.no/> and from the attachments above.

For more information, please contact:

CEO Morten Grongstad, tel: +47 99 15 39 05

CFO Inger Lise Egeland, tel: +47 94 87 69 45

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)