08.12.06 - Sale

IOT Holding ASA – Sale of Independent Oil Tools AS

IOT Holding ASA (“IOTA”) has signed an agreement to sell its wholly owned subsidiary Independent Oil Tools AS (“Independent”) to Petrolia Shashin AS, a wholly owned subsidiary of Petrolia Drilling ASA (“PDR”).

Independent is an international offshore equipment rental and oilfield service company with facilities / presence in Norway, Australia / New Zeeland, Singapore and Dubai, serving nearby offshore clients. Independent’s main product categories include tubing, drill pipe, casing and handling equipment.

Independent is expected to generate 2006 revenues of approximately MNOK 185, EBITDA of approximately MNOK 110 and EBIT of MNOK 57 (un-audited NGAAP figures).

PDR will pay a consideration of MNOK 380.0 for Independent. In addition, Independent has net debt obligations, primarily leasing debt, of approximately MNOK 57 (as per 31 October 2006). The consideration of MNOK 380.0 is payable in cash upon closing of the acquisition, which is expected to take place before 31 December 2006.

The acquisition is subject to approval by the general meeting of the owner of Independent, IOT Holding ASA, and satisfactory due diligence by PDR.

IOTA will subsequent to the divestment of Independent control significant values by way of cash and listed securities. The Board of Directors will during the first quarter of 2007 consider the company’s future strategy.

Stavanger, 8 December, 2006

IOT Holding ASA, Board of Directors