DNO International ASA - Mandatory Notification ...

On 1 September, 2008, DNO International ASA exercised a call option
to purchase 40.000.000 DNO shares at a price of NOK 3,25 per share.

DNO simultaneously sold 40.000.000 DNO shares at a price of NOK 8,60
per share.

DNO further purchased an American call option for 40.000.000 DNO
shares at a strike of NOK 4,00 per share, with an option premium of
NOK 4,8991 per share and expiry date 26 February, 2009.

DNO also issued a European put option for 40.000.000 DNO shares at a
strike of NOK 4,00 per share, with an option premium of NOK 0,10 per
share and expiry date February 26, 2009.

Following these transactions, DNO holds 23.873.960 treasury shares.
In addition, DNO holds options for purchase of 80.000.000 DNO shares.


DNO International ASA
2 September, 2008