Cancellation of subsequent offering

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN EMGS - Subsequent Offering Oslo, 8 July 2010: Electromagnetic Geoservices ASA ("EMGS" or the "Company" - OSE: EMGS) Reference is made to the stock exchange release dated 22 June 2010 regarding a private placement of new shares in the Company ("Private Placement") and a possible subsequent offering ("Subsequent Offering"). Due to the prevailing market conditions, with the shares of the Company trading below the subscription price in the Private Placement and in a Subsequent Offering, the Board of Directors of the Company has decided not to have a Subsequent Offering. Shareholders of the  Company  as  at  21 June  2010 (as recorded in VPS on 24 June 2010 and visible  in the VPS on  25 June 2010) who were not contacted by the Managers to participate in the Private Placement or who did not participate or leave an order in the Private Placement, will have had the opportunity to acquire shares in the Company at a price less than the subscription price in a Subsequent Offering, and a Subsequent Offering is therefore not required to address the interests of such shareholders. Contact Roar Bekker, EMGS chief executive officer, +47 73 56 88 10 Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00 About EMGS EMGS uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. The company is the EM market leader, and provides Clearplay, the world's first fully integrated EM system. Three service offerings - Clearplay Find, Test and Evaluate - have been designed to assist operators in the exploration and production phase. Clearplay supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The services enable integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency, and reduces risks and the finding costs per barrel. EMGS operates the world's first purpose-built 3D EM vessel fleet and has conducted more than 450 surveys to improve drilling success rates across the world's mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit for more information. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act) [HUG#1430143] This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction for further distribution is prohibited. Source: EMGS via Thomson Reuters ONE