(Oslo, 26 September 2007) Scandinavian Property Development ASA has entered into an agreement for the acquisition of the development project K2 - Fornebu. The office development project consists of 28,000 m2 of office development property located between Telenor Head Quarter and Radisson SAS Fornebu Park Hotel at Fornebu, just outside Oslo. The purchase price is approximately NOK 280 million. Today, K2 - Fornebu is owned by Telenor Eiendom Holding AS. The transaction grants Scandinavian Property Development ASA the rights to develop 28,000 m2 of office property. The Fornebu area is one of the largest and most important development areas in Norway. The area is situated in the outskirts of the capital city of Norway, Oslo. Office rental prices are rapidly increasing in the Oslo area. The purchase of K2 - Fornebu underlines Scandinavian Property Development's ambition of acquiring future-oriented projects in central, high-growth regions of Scandinavia. "Scandinavian Property Development is very satisfied with the purchase of the office development project K2 at Fornebu, close to the city of Oslo. The project is located between Telenor Head Quarter and a Radisson SAS Hotel, and other important environments as IT Fornebu and our company's major residential project are situated near by. The project is estimated to yield an IRR of more than 20% and the office premises will surely be very attractive among blue chip tenants and property investors. The office rental prices have already increased by approximately 10% during the 1st six months of 2007. We already have a lot of knowledge about the market and the Fornebu area in general which we can benefit from. This makes Scandinavian Property Development a highly competent developer of this office project." says Stein Haugbro, Chief Executive Officer of Scandinavian Property Development ASA. The transaction is expected to be completed by the end of November 2007. Please see more details in the enclosed investment presentation about K2 - Fornebu. After the acquisition of K2 - Fornebu, Scandinavian Property Development owns approximately 450,000 sqm of residential development projects and 230,000 sqm of commercial development projects. In addition Scandinavian Property Development owns approximately 17,000 sqm of yielding commercial properties. About the Fornebu area * AAA location by the seaside only ~ 5 km outside Oslo city centre (5 min drive) * Effective communications through the highway E-18 and the communication centre Lysaker (train, airport express train, buses etc) * Snarøya, outside Fornebu is already established as one of the most popular and expensive residential and commercial areas in Oslo * According to Bærum municipality the area will accommodate 15,000 workplaces and 6,000 residential units About Scandinavian Property Development ASA: Scandinavian Property Development ASA (ticker: SPDE) is a newly established Norwegian property development company that invests in development projects and opportunistic (high yield) properties within all the major property segments in Scandinavia. The company's objective is to play a leading role in this market. In March 2007 the company acquired a portfolio at Fornebu, Oslo with a value of approximately NOK 5.1bn and in June the company acquired Hinna Park AS, Stavanger at a price of approximately NOK 0.6bn. SPD aims to have a portfolio of NOK 10-15bn by the end of 2007. The portfolio will have a mix of pure development projects and acquisitions of commercial properties with development potential. SPD is listed on the NOTC list of the Norwegian Securities Dealers Association. The current market value of the company's shares is approximately NOK 2.8 billion. The company plans to apply for listing on the Oslo Stock Exchange in the 4th quarter 2007. The company is administrated and run by Aberdeen Property Investors. www.scandinavianproperty.no or www.spde.no Contacts: Stein Haugbro, Chief Executive Officer of Scandinavian Property Development ASA, tel. +47 950 26 210 Are Njåstein, CFO, Scandinavian Property Development ASA, tel. +47 982 39 003