Terra Markets has a big research department focusing on the Norwegian and Baltic securities. All research reports produced by Terra Markets are based on information obtained from public sources that Terra Markets believes to be reliable but has not independently verified, and Terra Markets makes no guarantee, representation or warranty as to its accuracy or completeness. Any opinions expressed in our research reports reflect Terra Markets' judgment at the time of preparing the report and are subject to change without notice. Our research reports are intended for use only by those investors to whom it is made available by Terra Markets and no part of our research reports may be reproduced in any manner without prior written permission of Terra Markets.

Our research reports are prepared for information purposes only by Terra Markets, registered in Norway under number NO 980 874 907 (the Register of Business Enterprises), under supervision of the Financial Supervisory Authority of Norway (Finanstilsynet). Our research reports are subject to the General Business Terms for Terra Markets.

Terra Markets is a member of The Norwegian Securities Dealers Association, which has issued recommendations and market standards for security companies. Our research reports are prepared in accordance with these guidelines. The Association’s website where the recommendations and market standards can be found is: http://www.nfmf.no/.

Our research reports do not represent an offer to buy or sell any security or other financial instrument or to participate in any investment strategy. No liability whatsoever is accepted for any direct or indirect loss or expense arising from the use of our research reports. Distribution of research reports or other investment advice is restricted by law in certain jurisdictions. Persons in possession of our research reports should seek further guidance regarding such restrictions before distributing these.

Analyst certification
The analysts who prepare our research reports, hereby certify that notwithstanding the existence of any such potential conflicts of interests referred to later in the disclaimer, the views expressed in our research reports accurately reflect our personal view about the companies and securities covered by our research reports. We further certify that we have not been, nor are or will be receiving any direct or indirect compensation related to the specific recommendations or views contained in our research reports.

Recommendation structure
Company reports
Terra Markets' recommendations are based on a six-month time horizon and absolute performance adjusted for risk. Near term dividends are included into return. The table below shows our general guidelines for determining our recommendations.

Risk	Buy/Strong Buy	Hold	Reduce/Sell
Low	> 10%	2% - 10%	< 2%
Medium	> 15%	3% - 15%	< 3%
High	> 30%	5% - 30%	< 5%

The percentages are defined as an upside to our price target plus eventual dividends within six months. Whether a Buy or Strong Buy / Reduce or Sell recommendation is given, depends on the analyst's conviction in the case.

Price targets are based on a combination of several valuation methods. The most frequently used are the Discounted Cash Flow (DCF), Sum Of The Parts (SOTP) and relative valuation methods, depending on the nature of the company.

Our risk assessments range from high risk to medium risk and low risk and are based on a subjective assessment of the following factors: 1) volatility in the share price, 2) liquidity in the share, 3) strength of the balance sheet, 4) the absolute earnings level and trend and 5) estimate risk.

Recommendation distribution as of July 7, 2010

Company reports	Strong Buy	Buy	Hold	Reduce	Sell
Total	8	86	30	8	2
% of total	6%	64%	22%	6%	1%
Corporate clients	4	20	2	0	1
% of total	15%	74%	7%	0%	4%

The table above shows recommendation distribution for all company reports issued during the last three months.

Recommendation distribution as of July 7, 2010 

Weekly Casebook	Strong Buy	Buy	Hold	Reduce	Sell
Total	9	67	52	9	0
% of total	7%	49%	38%	7%	0%
Corporate clients	4	13	6	2	0
% of total	16%	52%	24%	8%	0%

Trading recommendations
Terra Markets issues trading recommendations, Trading Buy and Trading Sell, which are based on a 1 to 5-day horizon. Trading Buy (Trading Sell) recommendation is given when the analyst believes the stock will rise (fall) on an absolute basis during a 1 to 5-day period. Trading Buy and Trading Sell recommendations may not coincide with our Buy and Sell recommendations given in the company reports on a six-month basis. There will not necessarily be any updates to the trading recommendations.

The selection of trading recommendations is based on the evaluation of short-term market fundamentals, performance of the peer stock prices, expected news flow as well as the companies' fundamental valuation. The comments given with the trading recommendations show the reasoning for them.

Historic and future returns
Please note that historic returns do not guarantee future positive returns from suggested trades. The client may not be able to achieve the same entry and exit prices for his positions. The client return will then deviate from the reported results of the trading. The commission and clearing cost will further reduce the return achieved by the client. Any trade can give a substantial negative result.

Potential conflict of interests
Investors should assume that Terra Markets is seeking or will seek Corporate Finance or other business relationships with the companies in this report. Terra Markets has performed the following corporate services for the following companies the last twelve months:

Share issues / placements: Aqua Bio Technology, Bionor Pharma, DiaGenic, NattoPharma, Nio Security.

Bond issues: Borgestad, Simtronics.

Advisory: 24SevenOffice, Atea, Borgestad, DiaGenic, Infratek, NattoPharma, Nio Security, Simtronics, Terra Gruppen, Transeuro Energy Corporation. 

Market making: 24SevenOffice, AF Gruppen, Aurskog Sparebank, Bionor Pharma, Borgestad, Borgestad Industries, Comrod Communication, ContextVision, DiaGenic, Eitzen Maritime Services, Fairstar Heavy Transport, Fara, Hexagon Composites, Indre Sogn Sparebank, Infratek, Kitron, Kongsberg Automotive Holding, Melhus Sparebank, NattoPharma, Nes Prestegjelds Sparebank, NorDiag, Nordic Health, Photocure, Scana Industrier, Scandinavian Clinical Nutrition, Simrad Optronics, Simtronics, Teco Maritime, Totens Sparebank, Unison Forsikring, Zoncolan.

Please note that: Aurskog Sparebank, Indre Sogn Sparebank, Melhus Sparebank, Nes Prestegjelds Sparebank and Totens Sparebank are indirect shareholders of Terra Markets AS; Chief Financial Officer of Badger Explorer, Gunnar Dolven, Chief Financial Officer of Totens Sparebank, Paul Tormod Stenberg, and Managing Director of Nes Prestegjelds Sparebank, Hans Kristian Glesne, are board members of Terra Markets AS.

Terra Markets never buy or sell shares for own account but may have holdings as a part of investment services activities such as market making. Analysts never hold shares in companies they analyze. A complete list of positions of employees can be found by CLICKING HERE. This list is updated weekly. Holdings as a part of Terra Markets' investment services activities such as market making are not included.

Information barriers
Confidentiality rules and internal rules restricting exchange of information between different parts of Terra Markets may prevent employees of Terra Markets who are preparing our research reports from utilizing or being aware of information available in Terra Markets which may be relevant to the recipients’ decisions. Terra Markets has established internal rules and regulations in order to avoid any potential conflicts of interests.