The Board of Directors has decided to start the process to transform Odfjell ASA from a Norwegian Joint Stock Public Company (ASA) to a European Joint Stock Public Company (Societas Europaea, hereafter called an "SE company"). By such transformation the Board aims for flexibility with regards to future localisation of the holding company. This flexibility will contribute to the furtherance of the company's international business.
The Board of Directors has based the proposal upon the following facts:

- About 75% of the company's shareholders are non-Norwegians
- Odfjell ASA is today a holding company for the subsidiaries domiciled and operating in other countries
- Most of the group's assets are owned outside Norway.
 
The Board of Directors will present the proposal to the upcoming Annual General Meeting on 3 May 2007 where the final decision as to this issue will be made. The transformation will not affect the creditors' or the employees' position with the company. Neither a transformation to an SE company, nor a possible subsequent relocation of the holding company, will affect the listing of the company's shares on the Oslo Stock Exchange.