EMGS (OSL:EMGS) Patent Dispute Decision And Strategic Review

EMGS (OSL:EMGS) Electromagnetic Geoservices ASA (EMGS), the market leader in electromagnetic (EM) imaging, today reported that, following proceedings launched by Schlumberger, three of its patents were not upheld in a first instance decision at the High Court in London. EMGS retains over 115 patents in 32 jurisdictions and in excess of 130 applications in 26 jurisdictions around the world.

In addition, EMGS and Warburg Pincus LLC today jointly announce the appointment of Goldman Sachs to conduct a review of the strategic options available to EMGS in the future commercialisation of its business.

Bjarte Bruheim, Chairman of EMGS, commented:

"Following today's decision, which is open to appeal, our IP position still remains strong. Although the decision is disappointing, these patents apply only to certain activities in UK waters and we retain full patent protection in more than 30 other jurisdictions. EMGS remains the market leader in EM and the only company that can offer a full suite of EM products globally.

"We have also announced today the decision of the Board to undertake a strategic review. This step is part of our ongoing strategy to exploit fully the commercial opportunities created by our EM technology."

ends Contacts

EMGS Svein Knudsen Chief Financial Officer +47 22 01 14 00

Capital MS&L Steffan Williams +44 207 307 5332 +44 7767 345 563 (m)

Jennifer Martin +44 207 307 5335 +44 7841 401 304 (m)

About EMGS EMGS uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. The company is the EM market leader and provides Clearplay, the world's first fully integrated EM system.

Three service offerings - Clearplay Find, Test and Evaluate - have been designed to assist operators in the exploration and production phase. Clearplay supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The services enable integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency, and reduces risk and finding costs per barrel.

EMGS operates the world's largest EM survey vessel fleet and has conducted more than 400 surveys, improving drilling success rates across the world's mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information

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EMGS

http://www.emgs.no/

ISIN: NO0010358484

Stock Identifier: XOSL.EMGS