Borregaard: Possible EU support for commercialisation of Exilva microfibrillar cellulose

16 March 2016: Borregaard ASA ("Borregaard", OSE ticker: BRG)

A consortium of European companies and research institutions, with Borregaard as lead member, has applied for financial support for the development and commercialisation of Borregaard's Exilva microfibrillar cellulose under the Horizon 2020 Flagship programme, the EU Framework Programme for Research and Innovation. The application has been positively evaluated, and it is now in the grant preparation phase. If granted, the support will cover up to 60% of Borregaard's project costs and make it possible to further increase business development activities in the Exilva project. The maximum amount which can be granted to Borregaard is 25 million euro over a period of three years. The intention behind the Horizon 2020 Flagship programmes is to reduce the financial risk associated with the development and market introduction of new technologies in the commercialisation phase. The grant will be reduced if the project makes a profit during this period.

The agreements between the parties involved in the consortium have not been finalised. Completion of the necessary set of agreements and approval by Horizon 2020 is expected to take place during the second quarter of 2016.

Contact
Jørn Syvertsen, Director Investor Relations, +47 958 36 335