New Issue: Wachovia sells $15.07 million 14.5% reverse exchangeables on U.S. Steel for Eksportfinans

By Jennifer Chiou

New York, Oct. 31 - Eksportfinans ASA priced $15.07 million of 14.5% annualized reverse exchangeable securities with contingent downside protection due May 5, 2008 linked to the common stock of United States Steel Corp. via Wachovia Capital Markets, LLC, according to a 424B3 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If U.S. Steel stock falls by more than 25% during the life of the notes - a knock-in event - investors will receive par plus 7.41% if the stock finishes greater than or equal to the initial price. If a knock-in event occurs and the stock finishes below the initial value, investors will receive 7.41% plus the losses.

If U.S. Steel stock does not fall by more than 25% during the life of the notes, investors will receive par plus 7.41% for losses up to 25% in the final share price. If a knock-in event does not occur and the stock finishes below 75% of the initial share price, the payout will be a number of U.S. Steel shares equal to $1,000 divided by the initial share price.

Issuer:	Eksportfinans ASA
Issue:	Reverse exchangeable securities with contingent downside protection
Underlying stock:	United States Steel Corp. (Symbol: X)
Amount:	$15.07 million
Maturity:	May 5, 2008
Coupon:	14.5%, payable monthly
Price:	Par
Payout at maturity:	If U.S. Steel stock falls by more than 25% during the life of the notes, par plus 7.41% if the stock finishes greater than or equal to the initial price; if a knock-in event occurs and the stock finishes below the initial value, investors will receive 7.41% plus the losses; if U.S. Steel stock does not fall by more than 25% during the life of the notes, investors will receive par plus 7.41% for losses up to 25% in the final share price; if a knock-in event does not occur and the stock finishes below 75% of the initial share price, the payout will be a number of U.S. Steel shares equal to $1,000 divided by the initial share price
Initial share price:	$112.50
Knock-in price:	$84.375, 75% of initial share price
Pricing date:	Oct. 29
Settlement date:	Nov. 1
Underwriter:	Wachovia Capital Markets, LLC
Fees:	1.25%

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