Hofseth BioCare ASA (HBC) has revealed a damage to the steam boiler, which is a vital part of the production process at HBCs plant in Midsund. This has resulted in immediate stop in production and notice of temporarily layoffs of some employees at the plant on Midsund. The damage is covered by HBCs insurance, both in terms of actual equipment replacement and operational business interruption insurance. Investigation of the unit has shown that there is a need to replace the damaged equipment. The shut down will not cause significant inconvenience to HBC until the equipment is replaced in mid-November, since HBC has over 800 tons of oil and more than 250 tons of protein in stock for immediate delivery up to November. The company will until the commencement of normal production, perform a number of planned maintenance and improvement activities, including work related to the production process of calcium.

HBC has also received a significant order for fresh salmon oil from a UK customer. The company has recently received several orders from various customers with an estimated value of less than 1 MUSD not specifically reported to the market.

- The steam boiler is a key part of our production process at our plant in Midsund. The damage that has now arisen means that the unit must be replaced with a new one, but also gives us the opportunity to undertake some major planned maintenance and repair activities. We have sufficient finished products in stock to supply customers until a new unit is in place, says CEO Jon Olav Ødegård at Hofseth BioCare.

For further information, please contact:
Jon Olav Ødegård , CEO of Hofseth BioCare ASA
Tel : +47 936 32 966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare:
Hofseth BioCare is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, Hofseth BioCare is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBCs objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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