ODIN OFFSHORE ODIN Forvaltning AS Norwegian domiciled open-end investment fund (Ucits) Report Issued: August 2007

Peer Group: Group Contact No: Resources Equities +47 22 01 02 03 Fund Manager/Adviser: Website: INVESTMENT STYLE Lars Mohagen (since January www.odinfond.no 2002) S&P ID Number: NO393249 Location: Share class screened: Oslo Ord Launch Date: August 2000 Fund Size (March 2007): NOK3.9bn

Further information on S&P's fund coverage can be found at RISK RETURN (STD DEVIATION) OVER www.funds.standardandpoors.com 5 YEARS Performance Data Source - © 2007 Morningstar, Inc. All Rights Reserved. All statistical data on this report has been run to 29/06/ 2007 on NAV to NAV basis, with gross income reinvested, in US Dollars. STANDARD & POOR'S OPINION (MAY 2007) ODIN Offshore invests solely in companies in the oil Risk is controlled largely by the team's detailed & gas industry and its related sectors worldwide. understanding of the individual holdings and the Leveraging off the group's knowledge of its domestic manager taking a commonsense approach to sub- offshore oil industry, the portfolio continues to run a sector diversification and the inherent cross- massive overweight to - currently over 64% correlations. of total assets - compared to its , the Lars Mohagen has managed this fund since January Philadelphia Stock Exchange Oil Service Sector 2002, two years after joining the group with over 14 index. years' sell-side experience where he gained his As with all ODIN funds, portfolio construction is specialist knowledge of the oil & gas sector. He relatively free of country and sector constraints, so it works within a strong collegiate environment, but can reflect the team's 50/60 best company ideas while he has the support of four other fund managers 3 YEAR RISK CHARACTERISTICS selected on a disciplined bottom-up, value-oriented - average 20 years' experience - and the three approach. The benchmark universe of companies is analysts, this fund is more a reflection of the Maximum Drawdown (%) Low -11.7 screened on standard criteria to identify undervalued individual manager than most ODIN portfolios. Volatility High 24.3 companies and the highlighted stocks undergo more Nevertheless, Mohagen's experience, his Correlation High 0.9 detailed research to form a list of potential holdings understanding of the sector and his disciplined Beta High 1.1 from which the manager may choose. approach, fully support an S&P AA rating.

SHARPE RATIO VS PEER GROUP FACT FILE Group: Established in 1990, ODIN became a Fund Manager: Lars Mohagen joined ODIN in wholly-owned subsidiary of SpareBank1 - Norway's 2000 with over 14 years broking experience and third largest bank - in January 2000. ODIN has detailed knowledge of the Norwegian oil services independence over its own day-to-day activities, is and shipping industries. responsible for over NOK47bn and ranks second in Style: Value approach using stock screens and in- Norway with a 21% share of the domestic equity fund depth research seeking undervalued companies market. with strong balance sheets and predictable earnings Team: The asset management team is highly growth. Portfolio construction is pragmatic and stable, operates a collegiate approach and flexible. comprises five fund manager/analysts - average 13 Performance: Over the five years to 29/06/2007, years investment experience - supported by three the fund has returned 588.7%, compared with research analysts. CALENDAR YEAR DECILE RANKS 162.3% for the sector median and 186.7% for the index, ranking 1/54. FUND MANAGER & TEAM Jarl Ulvin heads the team of five fund managers and three analysts. Managers have country & sector responsibilities and analysts focus on sectors. The team is responsible for over NOK47bn (€4.5bn), of which 93% is spread across 13 equity funds with mandates ranging from global sector remits - real estate, offshore oil services and shipping; to single country funds - Norway, Sweden and Finland and the broader geographics of Scandinavia, Europe and global markets. Another three equity mandates - 1% of total assets - are run on a fund-of-fund basis by Franklin Templeton (Japan and emerging markets) and Robur (Eastern Europe). The balance comprises four money market and bond funds where management is outsourced managed by ABN AMRO. Lars Mohagen - business administration (American Graduate School of International Management, US), joined ODIN in 2000 as a fund manager, with 14 years broking experience via Olso Finans, Carnegie, RS Decile ranking in discrete annual periods. 1st decile shown as rank 10, 2nd decile as rank 9, etc. to 10th decile as Rank Platou Securities, Norden Fondsmeglerforretning. 1. Jarl Ulvin - CIO - BBA & MBA (Texas Christian University, US), joined ODIN in 2000 as a fund manager and became CIO in 2005. He has over 20 years' investment experience.

Please see page 2 for required research analyst certification disclosure. ODIN OFFSHORE PORTFOLIO CHARACTERISTICS Peer Group: Resources Equities No. of holdings 56 Turnover ratio (%) 66 % in top 10 42

TOP 10 HOLDINGS (01/03/07)

% Bonheur 6.5 MANAGEMENT STYLE Sedco Forex 5.1 • ODIN Offshore invests in companies power and high cashflows or high dividends. Geo 4.9 worldwide that are involved in oil & gas or It is an iterative process. BW Offshore 4.6 closely related sectors. Performance is • With no weighting restrictions other than Geo-Services 4.4 measured against the Philadelphia SE Oil under UCITS rules, the portfolio can deviate Service index, but the fund often has a strong Atwood Oceanics 4.0 very significantly from index positioning. Norwegian bias. Pride International 3.8 • Risk controls focus on balancing sub- Diamond 3.1 • At least 80% of the fund must be in sector exposure, liquidity and understanding Awilco Offshore 3.0 equities and no more than 10% in unlisted the companies and their potential securities. Fred Olsen Energy 3.0 intercorrelations. Regular company visits are * In top 10 holdings a year ago • Portfolio construction is from the bottom- crucial. up, guided by the team's thematic views. The • The manager targets 50/60 holdings and preference is for value over growth stocks. ALLOCATION BREAKDOWN (01/03/07) keeps cash at around 3%. Stocks are The approach uses quantitative "value" reassessed on reaching their target price, or Fund % screens to reduce the index to manageable when the original investment case breaks Aerospace & Defense 1 levels for in-depth fundamental stock down. Construction & Engineering 1 analysis to identify those with strong balance Construction & Farm Machinery & Heavy - sheets, undervalued assets, good earnings trucks, includes non-military shipbuilding Industrial Conglomerates 1 PORTFOLIO REVIEW Marine 3 Oil & Gas Drilling 37 The key difference between the portfolio and The manager's knowledge of the oil & gas Oil & Gas Equipment &Services 49 its Philadelphia Stock Exchange Oil Service industry and search for diversification was Oil & Gas Storage & Transportation 8 index benchmark was in the geographic reflected in the portfolio. In line with the positioning and capitalisation bias. benchmark, the key divisions were oil & gas Other - equipment & services - where the fund had a Relative to benchmark the fund was Cash - 49% position compared to an index weighting massively overweight Norway (64% of of 64% and oil & gas drilling companies where assets), largely at the expense of emerging the fund was index neutral, at 36%. PERFORMANCE STATISTICS markets, such as Russia and Brazil. US exposure was 32% against an index 39%. Added diversification came from off-index 3 Years 5 Years positions in storage & transport (8%), marine In market capitalisation terms, the fund held Fund 367.3% 588.7% (3%) and a range of related industries (5%). Standard & Poor's Peer Median 122.4% 162.3% no companies capitalised above $50bn even Index** 125.2% 186.7% though these represent around 32% of the index. Fund Rank 2/60 1/54 Standard Deviation 24.3 - Relative Standard Deviation 1.3 - PERFORMANCE ANALYSIS (MARCH 2007) Volatility Adjusted Ranking 1/60 - ODIN Offshore has produced consistently companies. Key performers in 2006 included top-decile returns since January 2002 when it Bonheur, DOF Subsea, Petroleum Geo- CUMULATIVE PERFORMANCE came under Lars Mohagen's guidance. On a services, Prosafe and SeaDrill. cumulative basis, the fund has returned over Added value came from diversification across 270% over three years to March 2007 and related industries, although this has always over 460% over five years. been less than 10% of total portfolio assets. Performance has been driven by stock Positioning in US large-caps such as selection, particularly in the resource sub- , and sector, but also through a range of holdings GlobalSantaFe Corp, has provided the reflecting fund manager, Lars Mohagen's twofold benefit of adding performance and intricate knowledge of the Norwegian offshore providing a source of inherent liquidity in the oil industry and equipment servicing portfolio.

Ucits III permits net fund exposure to be less or greater than 100%. DISCRETE PERFORMANCE (CALENDAR YEARS)

2003 2004 2005 2006 YTD 29/06/2007 % Rank % Rank % Rank % Rank % Rank Fund 51.7 7/54 73.5 2/60 76.1 2/63 54.0 2/64 19.9 24/64 Index** 34.3 26.4 33.9 21.8 16.3 Median 30.7 21.3 29.4 22.6 18.7 ** FTSE AW Oil & Gas (Source: FTSE International) All of the views expressed in this research report accurately reflect our committee's views regarding any and all of the subject securi- ties or issuers.No part of the committee's compensation was, is or will be, directly or indirectly, related to the specific recommenda- tions or views expressed in this research report.© [2007] The McGraw-Hill Companies, Ltd trading as Standard & Poor's ("S&P") 20 Canada Square, Canary Wharf, London, E14 5LH Tel: +44 (0)20-7176 3800. All rights reserved. No part of this publication shall be reproduced, stored in any retrieval system or transmitted in any form electronic or otherwise without the prior written consent of S&P. Any part of the publication by S&P of which this page is a part is made accessible subject to the terms and conditions which are accessible at the url address below ("S&P Terms") - by accessing and viewing this page and/or and pages associated with or attached to it you accept the S&P Terms. Go to http://www.funds-sp.com/terms.cfm?langid=1 Performance Data Source - © 2007 Morningstar, Inc. All Rights Reserved. The performance information contained herein: (1) is proprietary to Morningstar and/or its con- tent providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no Page 2 guarantee of future results. 0824070802