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Kvaerner PLC (BB20)

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Wednesday 29 December, 1999

Kvaerner PLC

Agreement Signed

Kvaerner PLC
29 December 1999

Kvaerner signs agreement to sell thermal power activities

LONDON,  29 DECEMBER 1999: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has signed agreements with
General Electric Company of the U.S. for the sale of the larger part of
Kvaerner's thermal power activities for a gross consideration of
approximately US$70 million, payable in cash at closing.  This follows the
previously announced Letter of Intent that was signed by the parties at the
beginning of September. 

Included in the sale are the activities of Kvaerner Energy's Thermal Power
Division in Norway and the Power Projects and Services Divisions of Kvaerner
Energy at Clydebank in Scotland as well as the remaining stocks of gas
turbines.  Neither the Manufacturing Division at Clydebank nor the 49 per
cent share of the Middle Eastern joint venture, Masaood John Brown, is
included in the sale to GE. The sail of  these businesses will be the
subject of separate transactions.

The activities of Kvaerner Energy included in the sale employ a total staff
of approximately 620, of which some 180 are located in Norway and 430 in
Scotland. Combined, the activities have total annual revenues of
approximately US$250 million.

The transaction is expected to close in February 2000 upon receipt of
regulatory approvals.  It will result in a small accounting gain to

The total proceeds from the disposal of non-core businesses and assets
during 1999, excluding the sale of shipyards, have significantly exceeded
the target set by reaching US$611 million with cumulative gains of US$66

For further information:
Paul Emberley, Vice President, Group Communications, Kvaerner PLC:  
+44 (0)468 813 090,  or