Solvang ASA Company disclosures

The result from the shipping activities remains unsatisfactory, but there are some positive developments. Adjusted for one off items of NOK 4,6 mill write down of ships and NOK 6 mill in mark-to-market cost of interest rate hedging of debt, the shipping activities yielded a profit of NOK 7 mill in the 4^th quarter.

Compared to the prognosis we made at the start of 2010, our markets at year end are in total somewhat better than expected. The ethylene market is performing better than expected, while the improvement for our fully-ref LPG vessels is taking longer than expected to materialise.

The company has made a change in comparable figures regarding conversion of shares in shipping partnerships. The change relates to 2009 and is non-cash item. Details in separate note to the accounts.

Semiref/ethylene

For the semi-ref ships in the 12 000 to 17 000 cbm segment, earnings level was 12% lower than in 2009, measured in USD. Seen in isolation, earnings for the fourth quarter was 72%% higher than for average of the three first quarters in 2010 as well as 78% higher then 4^th quarter 2009. This is due to a substantially improved market at the end of the 4^th quarter. The positive development is caused by increased volumes from our contracts for ethylene out of the Arabian Gulf as well as a general market improvement due to an increase in demand.

The positive development has continued into the 1^st quarter of 2011 and we expect a firm market for the first six months of the year. However, the order book being delivered during 2011 to 2013, will result in an increase on the supply side that may cause some concern for the market in the longer term.

LGC/VLGC

For ships in the 60 000 cbm segment, the freight level was 34% higher than in 2009, measured in USD. Earnings are, however, not satisfactory. During 2010 the market improved somewhat from the absolute low seen during the second half of 2009. But it is still volatile and at a low level.

The company's two 75 000 cbm Panmax VLGC ships have in 2010 had earnings that are approximately USD 100.000 per month higher than the LGC-vessels. But also for these ships the earnings are unsatisfactory. The company has one 82 000 cbm VLGC ship, which is contracted on a time charter until May 2011.

As earlier reported, the major part of the order book has been delivered in the LGC and VLGC markets and we do not expect at net increase in the world fleet during 2011 and 2012. Any orders for new buildings can only bee delivered towards the end of 2013. However, it takes longer time then expected for the increase in demand to digest the supply surplus that was built up during the period 2008 to 2010. Export of LPG out of the Arabian Gulf has increased from 2009 to 2010 and is expected to increase further in 2011. This development should create a better balance between supply and demand and thereby increased earnings.

Tax

The company has received notice for a change in the tax accounts for 2008.The notice is based on how the company organised the ownership of some of the parts in our ship-owning partnerships relative to the Norwegian tonnage tax system. These are shares in ships that have been sold out of the fleet. One consequence of the notice is that the company leaves the tonnage tax system for these parts as from 1. Jan 2008.The notice may cause an increase in payable tax of NOK 50 mill. The tax cost is charged to the accounts for 2008 and reflected in the equity as per 1. Jan 2009.

The company's entire present fleet is owned under the normal taxation regime.

General

There have been no incidents with a particular impact on the accounts in the period.

In an improving, but still demanding market, the company maintains its focus on cost control while upholding the beneficial, long-term financing of the company's fleet.

The company carried out no ordinary classification docking, against three last year.

Stavanger, 28th February 2011