HitecVision PriVate equity as

H1
HitecVision Private Equity AS

first six months 2008
2
highlights
HitecVision continues its growth, both
in revenues, profits and assets under
management. Revenues for the first six
months of 2008 were NOK 88.2 million,
against NOK 50.1 million for the corresponding
period in 2007. Net income
after tax and minority interests was
NOK 40.8 million, against NOK 22.1
million for the first six months of 2007.
Total commited capital in funds advised
by HitecVision increased from NOK 2.3
billion to NOK 6.7 billion.
A number of realisations from Fund III in
the first half of the year will be recognised
in the accounts in the second half, and
continued high profitability is therefore
expected for the rest of the year.
A number of important milestones were
reached during the first six months:
HitecVision successfully closed its
largest fund to date, HitecVision V LP.
With a committed capital of USD 816
million (NOK 4.5 billion), it is one of the
largest private equity funds ever raised in
Norway. More than half of the capital was
raised outside Norway, with 22% commited
from the other Nordic countries and
30% from the rest of Europe and USA.
The fund attracted a number of blue-chip
international investors, and was heavily
oversubscribed.
HitecVision and the company’s employees
have each committed USD 8 million to the
Fund through HVPE Capital V AS, which
is held 50% by the company and 50%
by the employees.
In the Fund III portfolio, exit transactions
totalling about one billion NOK have
been closed. These include:
Trade sale of Knowledge Systems Inc.
Sale of 1/3 of the Fund’s shares in
the listed E&P company Norwegian
Energy Company ASA (Noreco)
Secondary sale of the Fund’s investments
in RigNet, Inc, Norse Cutting &
Abandonment AS and SPT Group AS.
HitecVision’s share of the Fund’s proceeds
from these realisations will be booked in
the second half of 2008. Fund III is now
largely exited, and the only remaining
investments are in listed companies:
Norwegian Energy Company ASA – Noreco
(Oslo Stock Exchange) and ProSep, Inc.
(Toronto Stock Exchange).
In the Fund IV portfolio, growth and
value creation activities continue. The Fund
now has seven main investments - see
page 5 for an overview. Major milestones
in the first half of 2008 include:
Creation of Subsea Technology Group
AS, a specialist supplier of technology
and engineering services to the growing
subsea market.
Creation of APPLY AS, a new major
provider of electro engineering,
installation and technical services.
Fund V has made two investments:
Spring Energy Norway AS, a recently
established Oslo-based independent
E&P company
Hitec Products Drilling AS, a supplier
of oil and gas drilling technology.
(The company is not related to
HitecVision.)
HitecVision continued to add to both its
investment and corporate services teams,
with the addition of five new staff so far
this year. HitecVision now employs 24
across our four offices in Stavanger,
Oslo, Aberdeen and Houston.
NOK 63 million was distributed to
shareholders through a repurchase of
1 145 450 own shares at a share price
of NOK 55. The repurchase was completed
in June, following an offer to all shareholders.
financial results
HitecVision achieved operating revenues
of NOK 88.2 million in the first half of
2008 (up 76% on the corresponding
period last year) and net income after
taxes and minority interest of NOK 40.8
million (up 85%). Revenues are derived
as follows:
Advisory fees (Fund III, IV and V):
NOK 48.3 million
Return on investments (Fund III):
NOK 35.6 million
Share of income from associated
company: NOK 4.4 million
No proceeds from the first six months’
realisations from Fund III have yet been
booked in the accounts of HitecVision.
2
solidity
HitecVision has a strong balance sheet
with excellent liquidity and no interestbearing
debt, enabling the company
to meet all its investment obligations
in relation to funds under management
as well as to finance its further planned
expansion.
Due to the long term nature of fund
advisory agreements, a significant part
of the company’s revenues are predictable
for several years to come.
shareholder matters
A repurchase of shares was completed in
June 2008, following an offer issued to all
shareholders. In total 1 145 450 shares
were bought back by HitecVision, at a
share price of NOK 55. The shares were
in turn sold on at the same price to HVPE
Capital V, a company owned 50% by
HitecVision and 50% by the company’s
employees. HitecVision’s foremost asset is
its human capital, and significant employee
share ownership is an important factor in
ensuring the long term stability of the team.
As at 21st August 2008, HitecVision had
174 registered shareholders, compared to
275 one year ago. The HitecVision share
is listed on the A list of the Norwegian
Over The Counter (NOTC) market,
organised by the Norwegian Securities
Dealers Association. HitecVision publishes
annual and half year reports.

fund details
3
FuND III FuND IV FuND V
Key data:
Key data:
Key data:
Final closing:
30th June
2002
Final closing:
31st May
2006
Final closing:
10th March
2008
Total committed
capital:
690 MNOK
Total committed
capital:
300 MUSD
Committed capital:
816 MUSD
HitecVision
committed capital:
60 MNOK
HitecVision
committed capital:
9.75 MUSD
HitecVision Private Equity’s
committed capital:
16 MUSD
Advisory fee:
2.5% of committed
capital
Advisory fee:
1.75% of committed
capital
Advisory fee:
1.85% of committed
capital*
Fund maturity: 2002–2009
Fund maturity: 2006–2016
Fund maturity: 2008–2018
*) Through HVPE Capital V AS (50% owned associated company)
Fund III is nearing the end of its lifespan,
as seven of the originally nine portfolio
companies have been fully exited, while
the two remaining holdings are in listed
shares.
The Fund has invested in nine portfolio
companies and made a number of add-on
acquisitions to these. To date the Fund has
made seven full exits and two partial exits.
Please refer to the back of the report for
more details on the portfolio companies.
Highlights in the first six months
of 2008 include:
Trade sale of Houston-based software
company Knowledge Systems, Inc.
to Halliburton, in May.
The placement of 1/3 of the Fund’s
shares in the listed E&P company Norwegian
Energy Company ASA (Noreco) in the market,
at a share price of NOK 34, in June.
Sale of investments in Norse Cutting
& Abandonment, RigNet and SPT Group
to Cubera Private Equity in a secondary
transaction (agreement entered into
in May, final closing held in July).
Fund III’s remaining portfolio consists
of listed shares in Noreco and ProSep Inc.
Fund IV is fully invested, i.e. it is closed
for new direct investments, and the remaining
capital will be used for add-on and
follow-on investments in the existing
portfolio companies. Per end June the fund
had called in 70% of the committed capital.
The Fund’s originally five direct investments
have during the first part of 2008
been restructured into seven direct
investments. Please see the portfolio
company overview for further information.
During the first half of 2008 the Fund
made a direct investment in STG and
a follow-on investment in connection
with the formation of Haaland Group.
Highlights in the first six months
of 2008 include:
The launch of APPLY AS in February,
following a restructuring of the Fund’s
investment in SørcoGruppen, when Maritime
Systems and Teknisk Bureau merged
with North Sea Innovation and Asator.
With over 1000 employees, mainly
in Western Norway, APPLY is a major
force in its selected areas of operation.
The launch of Subsea Technology
Group AS (STG) in April, based on a
resutructuring of the Fund’s investment
in Technor, during which the subsea and
related businesses in Technor were turned
into an independent company and acquired
Ross Offshore and Ross Drilling.
Fund V held its final closing in March 2008,
reaching a capital base of USD 816 million.
The Fund is targeting eight to ten portfolio
companies, primarily in Europe and North
America, with revenues between USD 50
million to 300 million. Equity investments
per portfolio companies is expected to
range from USD 30 million to 150 million.
In addition the Fund expects to make
a number of add-on investments to the
portfolio companies.
The Fund has made two investments
during the first six months:
Hitec Products Drilling AS, a fastgrowing
Stavanger-based supplier of
advanced oil and gas drilling technology.
Spring Energy Norway, a newly established
Oslo-based oil and gas company.
Haaland and its subsidiary Industrigravøren
were divested from the Aarbakke
Group, and now form a separate development
platform; Haaland Group. Due to
strong growth, both Aarbakke and Haaland
are investing heavily in new production
facilities. The expansion project is currently
being finalised at Aarbakke Group, while
the new production facilities at Haaland
Group are well underway.
Stavanger, 21st August 2008
The Board of HitecVision Private Equity AS

Income statement
4
all figures in NOK 1 000 30.06.2008 30.06.2007 31.12.2007
Operating revenues 48 296 23 455 54 607
Investment income 39 951 26 670 107 179
Total revenues 88 247 50 126 161 785
Operating expenses 31 480 17 725 43 379
Depreciation & amortisation 706 546 1 214
Net operating income 56 061 31 855 117 193
Net financial income /(loss) 682 (186) 811
Net income before taxes 56 743 31 669 118 003
Income tax (4 726) (2 349) (3 479)
Net income before minority interests 52 017 29 320 114 524
Minority interests (11 210) (7 216) (33 434)
Net income after minority interests 40 807 22 104 81 091
Balance Sheet
all figures in NOK 1 000 30.06.2008 30.06.2007 31.12.2007
Intangible fixed assets 3 109 3 634 3 509
Tangible fixed assets 2 117 1 808 1 988
Financial fixed assets 132 898 103 391 120 130
Receivables 8 949 2 982 8 743
Cash and bank 41 009 1 784 45 471
Total assets 188 081 113 599 179 840
Total Equity net of minority interests 161 089 66 643 120 538
Minority interests 12 019 - 9 923
Total Equity 173 108 66 643 130 461
Current liabilities to financial institutions - 38 497 16 798
Tax payable 4 493 2 408 3 598
Dividends payable - - 15 003
Other current liabilities 10 479 6 051 13 981
Total equity and liabilities 188 081 113 599 179 840

PORTFOLIO COMPANIES
5
FuND III
current:
Norwegian Energy
Company AS (Noreco)
Revenues for 2007: MNOK 839
Noreco is an independent oil company,
founded in Stavanger in 2005.
The company is building a strong
pan-North sea presence organically
and through acquisitions, as a base
for further international expansion.
Noreco was listed on the Oslo Stock
Exchange in November 2007.
www.noreco.com
ProSep Inc
Revenues for 2007: MNOK 173
ProSep, Inc. supplies process technology
to the oil and gas industry from
companies based in Canada, Norway,
USA and Asia. The company is listed
on the Toronto Stock Exchange.
www.prosepinc.com
exited:
and offshore. MTEM was established
as a spin-off from the University
of Edinburgh, with financing from
HitecVision and two other investors.
When the technology had been commercialised,
the company was sold in
a trade sale to PGS ASA in June 2007.
www.mtem.com
Norse Cutting &
Abandonment AS
NCA has a leading position in several
markets within subsea activities.
NCA’s services, based on its proprietary
cutting technologies, are used
in connection with subsea platform
removals and modifications, and
well slot recovery programs. The
company’s IOS Offshore subsidiary
is a leading marine anchors rental
business. NCA is based in Norway
with a Houston based subsidiary
serving the Gulf of Mexico market.
The Fund’s investment in NCA was
sold in secondary transaction to
Cubera Private Equity in 2008.
www.nca-group.com
Revus Energy ASA
FuND IV
current:
Apply AS
Newly established.
Est. revenues for 2008: NOK 1 Bn
APPLY provides Electro Engineering
& Technical Services within three
main areas: oil and gas, maritime
and construction & building.
www.apply.no
Aarbakke Group AS
Revenues for 2007: MNOK 766.3
Aarbakke is an independent provider of
subcontracting and fabrication services
to the international oil and gas industry,
specializing in precision machining
services. The Group consists of several
companies organized in two main groups:
The Aarbakke Group (machining services,
primarily to subsea and downhole
field applications), and the Haaland
Group (sheet metal fabrication).
www.aarbakke.com
Technor ASA
Revenues for 2007: MNOK 1,426.8*
The Technor Group manufactures
and distributes electronic, electromechanic
and flow control products
to niche markets within the oil
and gas industry, including refining,
petrochemical and LNG production,
processing and transportation.
Technor has operations in Norway,
France, England, Italy and the UAE.
www.technor.com
Vector International AS
Revenues for 2007: MEUR 101.3
Vector International is a leading
provider of specialist flanges and
other pipe connectors to the oil, gas
and petrochemical industries. The
company also maintains a large pipe
and valve trading operation. Vector
operates out of main offices in Norway,
Belgium and Wales, with sales offices
in Scotland, England, the Netherlands,
Dubai, Malaysia, Australia and USA.
The company’s main products have
strong market positions and have shown
rapid growth over the last years.
APL ASA
APL is a world leader within loading,
offloading and mooring systems for
the oil and gas industry. Its solutions
have been tailored for such applications
as offshore terminals, FPSOs
and shuttle tankers. HitecVision
led the company’s Management
Buy-Out from Statoil in 2004.
APL was listed on the Oslo Stock
Exchange in March 2005, and the
Fund’s investment was fully realized
within six months after the IPO.
APL is currently part of BW Offshore.
www.apl.no
Knowledge Systems, Inc
Knowledge Systems’ innovative
Drillworks software, training and
consulting services are used by most
major and independent oil companies
to avoid trouble while drilling and improve
exploration and drilling success.
The company is based in Houston,
USA. KSI was sold in a trade sale
to Halliburton in May 2008.
www.knowsys.com
MTEM Ltd
With patented technology MTEM
(Multi-Transient Electro-Magnetic)
provides a complete electro-magnetic
survey acquisition and processing
technique for prospects both on land
Revus Energy is an independent
Norwegian oil company. It was established
in 2002 with support from
HitecVision, developed to a mid-size
company, and listed on Oslo Stock
Exchange in 2005. The Fund’s investment
was fully realised at that time.
www.revus.no
RigNet, Inc
RigNet is a leading provider of highperformance
communications networks
and real-time data services for the oil
and gas industry. The company operates
globally with head office in Houston,
USA. The Fund’s investment in RigNet
was sold in secondary transaction
to Cubera Private Equity in 2008.
www.rig.net
SPT Group AS
SPT provides a combination of
software and consultancy services
relating to multiphase flow simulation
and reservoir simulation. The company
operates globally with head office in
Norway. The major part of the Fund’s
investment in SPT was sold to Altor
Private Equity in 2006, while the rest
was sold in secondary transaction
to Cubera Private Equity in 2008.
www.sptgroup.com
Noble Denton Holdings Ltd
Revenues for 2007: MGBP 49.3
Noble Denton is an independent,
market leading consultancy firm which
offers services to the global offshore,
shipping and insurance industries.
The Group has its head office in the UK,
and additional offices in 15 different
locations throughout the world.
www.nobledenton.com
Subsea Technology Group AS
Newly established.
Est. revenues for 2008: MNOK 880
STG is structured into two operational
units: STG Products and
STG Engineering. Combined the
companies’ services and solutions
cover the full life cycle of a field,
from field evaluation and exploration
drilling, through the development
phase to subsea operations and
inspection, maintenance and decommissioning.
STG has operations
in Norway, the UK and the US.
www.stg-subsea.no
SørcoGruppen AS
Revenues for 2007: MNOK 2,082*
SørcoGruppen consists of over
a number of entities operating in
various niches within the oil and
gas industry. The major companies
are Sørco, Leirvik Maritime Technology,
and Nemo Engineering.
www.sorco.no
www.leirvikmt.no
www.nemo-engineering.no
www.vectorint.com
FuND V
current:
Hitec Products Drilling AS
Revenues for 2007: MNOK 289
Hitec Products Drilling (HPD) is an
independent provider of advanced,
customised drilling solutions and
well intervention systems for
the offshore oil and gas industry.
HPD is headquartered in Stavanger
(Norway), with subsidiaries in the
Aberdeen (UK) and Houston (US).
The team of 140 employees has been
involved in more than 130 different rigs.
Through the business segments PHD
is exposed to the full life cycle of a rig.
www.hitecpd.com
Spring Energy Norway AS
Newly established.
Spring Energy Norway AS is an oil and
gas company established by a group
of Exploration & Production (E&P)
professionals with extensive experience
and an excellent track record from the
Norwegian Continental Shelf (NCS).
Spring Energy will participate in
exploration, appraisal and development
projects on the NCS, with the
objective of developing a risk balanced
portfolio over the next 3 to 5 years.
The company is qualified as a license
partner on the NCS and aims to be
qualified as an operator during 2010.
www.springenergy.no
*) Including businesses later split out into separate holdings

HitecVision Private Equity AS
Postal address: P.O. Box 8120 · 4068 Stavanger · NORWAY
Visitor address: Jåttåvågveien 7 · 4020 Stavanger · NORWAY
PHONE +47 51 20 20 20 · FAX +47 51 20 20 51
contact@hitecvision.com · WWW.HITECVISION.COM
HitecVision sponsors the Norwegian Society
for Sea Rescue Summer School for children
As part of HitecVision’s annual sponsor program the firm has contributed NOK 100,000 to the
Norwegian Society for Sea Rescue’s (NSSR) Summer School in Stavanger. The sponsorship has been used
to purchase a Zodiac RIB. This is the first year in operation for the Summer School in Stavanger, giving
children aged 9 to 12 years the opportunity to enjoy a week each learning seamanship and sea sense.
The NSSR is a humanitarian organization established in 1891, aiming at saving lives and recovering
property at sea. The fleet covers the whole Norwegian coastline from the Swedish border in the south
to the Russian border in the north.
stavanger - oslo - aberdeen - houston