KEMA Laboratories to Change Ownership From DNV GL to CESI

ARHNEM, The Netherlands, Oct. 10 -- DNV GL, a provider of classification, technical assurance, software and independent expert advisory services, issued the following news release:

* * *

- Transaction comprises KEMA Laboratories for testing, inspection and certification of high power and high voltage equipment.

* * *

ARHNEM, The Netherlands, MILAN, Italy - DNV GL, the world's largest resource of independent power and renewables experts and CESI, world leader in testing, inspections and technical consulting services in the energy sector, have signed an agreement to transfer the ownership of KEMA Laboratories to CESI. The transfer comprises KEMA and all the high-voltage and high-power testing and inspection activities performed by its personnel in its own laboratories in Arnhem (NL), Prague (CZ) and Chalfont (USA). The completion of the transaction is expected to take place at the end of 2019, subject to customary closing conditions, including regulatory approvals.

The KEMA testing and inspections facilities include the world's largest high-power laboratory, with the highest short circuit power of 10,000 MVA, and the world's first laboratory capable of testing ultra-high voltage components for super grids, as well as the Flex Power Grid Laboratory, for advanced testing of smart grids components. All former KEMA advisory employees will remain within DNV GL including all the advisory services as well as DNV GL's testing and verification services for power failures, battery testing, transformer oil testing and smart grid testing.

Once finalised, the transfer will generate significant benefits for both CESI and DNV GL. CESI, by combining the extensive expertise and capabilities of its laboratories with those of KEMA, will become the world leader for independent testing of advanced technological components for the energy industry. When the transaction is completed, DNV GL will have a more focused global energy organization of 2,000 power and renewable experts, which can be scaled much faster in the years to come in order to meet the rapid changing future market and technology demands, as the electrification and decarbonizing in the world continues.

"CESI will own the world's most advanced testing laboratories in the Netherlands, Italy, Germany, Czech Republic and the United States, offering top-class testing and inspections services to major world-wide utilities and global manufacturers of HV/MV/LV components for the power industry", says CEO of CESI, Matteo Codazzi. "The energy sector is undergoing a deep transformation, with client needs continuously evolving. Through the combination of CESI and KEMA respective laboratories, and the mutual expertise of our talented professionals, we are creating the global market leader in independent testing and inspections for the energy industry. Together, CESI and KEMA will be uniquely positioned to provide our world-wide customers with outstanding services to effectively address the challenges of the energy transition."

"Following a thorough review of our strategy for our laboratories in 2018 we are glad we have found a very good new owner for the KEMA Laboratories. In DNV GL's energy business we will continue to focus and expand our business in advanced, often digital, advisory, testing and certification services that help our customers handle the exponential growth of wind, solar and storage and their integration into the power grids," said Ditlev Engel, CEO of DNV GL - Energy. "In line with this strategy, we acquired top-notch companies in recent years with expertise in digital platforms, solar PV and grids, and invested in promising innovations like Instatrust, a digital market place for renewable power purchase agreements and Smart Cable Guard, a digital fault detection service for reliable grids. We will continue on this path to grow and extend our trusted advisory and certification services."

* * *

About CESI

CESI is a world-leading consulting, testing and engineering company in the field of technology and innovation for the electric power sector. CESI operates in 40 countries also providing testing and certification services as well as civil and environmental engineering services. In addition, CESI develops advanced solar cells for space and terrestrial application. The company's key clients include major utilities, TSOs, DSOs, power generation companies, financial investors, electromechanical manufacturers as well as governments and regulatory authorities. CESI is an independent joint-stock company headquartered in Milan and with facilities in Berlin, Mannheim, Dubai, Abu Dhabi, Knoxville (TN - USA), Rio de Janeiro, Santiago de Chile and Bogota.

www.cesi.it

About DNV GL

DNV GL is a global quality assurance and risk management company. Driven by our purpose of safeguarding life, property and the environment, we enable our customers to advance the safety and sustainability of their business. Operating in more than 100 countries, our professionals are dedicated to helping customers in the maritime, oil & gas, power and renewables and other industries to make the world safer, smarter and greener.

DNV GL delivers world-renowned testing, certification and advisory services to the energy value chain including renewables and energy management. Our expertise spans onshore and offshore wind power, solar, conventional generation, transmission and distribution, smart grids, and sustainable energy use, as well as energy markets and regulations. Our experts support customers around the globe in delivering a safe, reliable, efficient, and sustainable energy supply.

Learn more at www.dnvgl.com/power-renewables