Reference is made to the stock exchange notice published on 15 September 2021
concerning the letter of intent for the merger of SpareBank 1 Sørøst-Norge and
SpareBank 1 Modum.

The boards of banks have today approved a plan for merging the banks (merger
plan). SpareBank 1 Sørøst-Norge will be the legal and accounting acquiring bank,
and thus acquire all of SpareBank 1 Modum's assets, rights and obligations at
the completion of the merger. The merged bank will continue under the name
SpareBank 1 Sørøst-Norge.

The objective is to create a strong regional savings bank in the banks' market
areas. Based on figures from the account as of 30 September 2021, SpareBank 1
Sørøst-Norge will have:

o  Total assets (including transfers to mortgage credit institutions) of NOK 116
billion
o  Equity (excluding hybrid capital) of approx. NOK 11.2 billion
o  CET1 capital of 18.2 per cent (pro forma)

As regards background and objectives, financial objectives, composition of the
merged bank's bodies and management, reference is made to the Stock Exchange
notice published on 15 September 2021.

Further on the exchange ratio
The exchange ratio and merger consideration are set after negotiations between
the banks and are based on a process that includes financial and legal due
diligence, review of the banks' balance sheets as of 30 June 2021, with
assessment of surplus and deficit values of assets and liabilities, as well as
an updated review as of 30 September 2021, and emphasis on book and value
adjusted equity and normalized result. Based on this, banks agree on an 85.2 per
cent exchange ratio to SpareBank 1 Sørøst-Norge and 14.8 per cent to SpareBank 1
Modum.

The consideration for the acquisition of operations in SpareBank 1 Modum will be
provided in the form of equity certificates in the merged bank, which are issued
to existing equity certificate holders in SpareBank 1 Modum, Varig Forsikring
Midt-Buskerud and Sparebankstiftelsen SpareBank 1 Modum.

In connection with the merger, half of the primary capital in SpareBank 1 Modum
as of 30 September 2021, NOK 624 million, will be converted into equity
certificate capital. The equity certificates are issued by SpareBank 1
Sørøst-Norge to Sparebankstiftelsen SpareBank 1 Modum. The merged bank will then
have equity capital certificate ratio of about 60 per cent at the time of the
completion of the merger.

Equity certificates in SpareBank 1 Sørøst-Norge issued as consideration to
existing equity certificate holders in SpareBank 1 Modum and to
Sparebankstiftelsen SpareBank 1 Modum at the conversion of ownerless capital is
issued at a rate of NOK 53.54 per equity certificate. This corresponds to the
three-month volume-weighted rate as of 4 November 2021.

12 887 149 new equity certificates will be issued to Sparebankstiftelsen
SpareBank 1 Modum as a result of the conversion and 8 521 495 equity
certificates will be issued to existing equity certificate holders in SpareBank
1 Modum, Sparebankstiftelsen SpareBank 1 Modum and Varig Forsikring
Midt-Buskerud. This means that one equity certificate in SpareBank 1 Modum is
exchanged for 2.223 equity certificates in the merged bank. This gives the
following allocation of the equity certificate capital in the merged bank:

Allocation of ownership	 	                               # EC	Ownership
SpareBank 1 Stiftelsen BV		                 24 141 356 	17,2 %
Sparebankstiftelsen Telemark-Grenland		         18 910 174 	13,5 %
Sparebankstiftelsen Nøtterøy-Tønsberg		         10 925 503      7,8 %
Sparebankstiftelsen Telemark - Holla og Lunde		 10 273 723      7,3 %
Other owners SB1 Sørøst-Norge		                 54 439 161 	38,9 %
Sparebankstiftelsen SpareBank 1 Modum		         18 444 646 	13,2 %
Varig Forsikring Midt-Buskerud	 	                  2 963 998 	 2,1 %
Total		                                        140 098 561    100,0 %

Timetable and prerequisites for implementation
The boards of the two banks will now present the proposed merger to the
supervisory board and the general meeting of the banks respectively. The
completion of the merger is, among other things, conditional on the supervisory
board/general meeting making the necessary resolutions at meetings on 16
December 2021, that the Financial Supervisory Authority of Norway grants the
necessary permission for completion and that the Norwegian Competition Authority
does not impose conditions that significantly change the assumptions that the
banks have assumed for the agreement.

The aim is to complete the merger in early April 2022.

The banks have retained SpareBank 1 Markets AS as common financial adviser in
connection with the merger, while Advokatfirmaet Selmer AS has been retained as
a common legal adviser.

Contact persons:
SpareBank 1 Sørøst-Norge 
Finn Haugan, Chair, tel. + 47 900 41 002
Per Halvorsen, Group CEO, tel. + 47 934 07 441

SpareBank 1 Modum
Trond Gewelt, Chair, tel. + 47 970 44 880 
Egil Meland, CEO, tel. + 47 481 05 221

This information is disclosed pursuant to the requirements of the Securities
Trading Act § 5-12.
This information constitutes inside information and is subject to the disclosure
requirements in accordance with the Market Abuse Regulation (MAR). The
notification will be published on behalf of SpareBank 1 Sørøst-Norge by Per
Grøtterød, Head of Treasury, at 08:15, 10 November 2021.