Hofseth Biocare ASA: APPROVAL AND PUBLICATION OF PROSPECTUS SUPPLEMENT FOLLOWING AGREEMENT WITH DKSH

NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL

Reference is made to the stock exchange announcements from Hofseth BioCare ASA (the "Company") on 4 December 2020 regarding approval and publication of the Company's prospectus dated 3 December 2020 (the "Prospectus") and on 7 December 2020 regarding the commencement of the subscription period in a subsequent offering raising gross proceeds of up to approximately NOK 40 million (the "Subsequent Offering").

On 8 December 2020, e.g. following publication of the Prospectus, the Company published that it had entered into a distribution agreement with DKSH. The Norwegian Financial Supervisory Authority has today approved a supplement to the Prospectus (the "Prospectus Supplement"), which implements information about the distribution agreement with DKSH into the Prospectus. The information contained in the Prospectus Supplement shall be considered as an integral part of, and is to be read together with, the Prospectus.

The Prospectus Supplement is published today and will, subject to applicable local securities laws, be available at /updates/transactions. The Prospectus Supplement will also be available at the offices of the Company.

Pareto Securities AS acts as manager in the Subsequent Offering. Advokatfirmaet CLP DA acts as Norwegian legal counsel to Hofseth BioCare ASA.

For further information, please contact:

Jon Olav Ødegård, CFO at Hofseth BioCare ASA

Phone:

E-mail:

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that develops high-value ingredients and finished products currently targeting the consumer health market. Research is ongoing to identify the individual elements within the products that modulate inflammation and the immune response with pre-clinical studies in multiple clinics and university research labs in several countries. Lead clinical and pre-clinical candidates are in development for the protection of the Gastro-Intestinal (GI) system against inflammation, including ulcerative colitis and the orphan condition necrotising enterocolitis, as a Medical Food to help treat age-related Sarcopenia, and as a treatment for Iron Deficiency Anemia, all using peptide fractions of Salmon Protein Hydrolysate. Preclinical trial work with the oil is ongoing to ameliorate lung inflammation in eosinophilic asthma and COPD (“smokers lung”) as well as clinical work in COVID.

The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and collagen-calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.

HBC is listed on Euronext Expand Oslo with ticker "HBC". More information about Hofseth BioCare at hofsethbiocare.com and facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act