DNV GL and CESI signed a transfer agreement for Kema Laboratories.

-Kema Laboratories is responsible for testing, inspection and certification of high power and high voltage equipment.

- The acquisition of KEMA Laboratories makes CESI the world's leading independent supplier of power components testing.

- Former KEMA energy and renewable energy services, DNV GL branded since 2014, will remain with DNV GL.

- DNV GL will continue to focus on independent consulting and certification services for the energy and renewable sectors.

DNV GL, the world's largest source of independent power and renewable energy experts, and CESI, the world leader in testing, inspection and technical consulting services in the energy sector, have signed an agreement to transfer ownership of KEMA Laboratories. This transfer process covers KEMA and all high-voltage and high-power testing and inspection activities carried out in its laboratories in Arnhem, Prague and Chalfont. Completion of the transfer transaction is expected to take place at the end of 2019, subject to traditional closing conditions, including regulatory approvals.

The KEMA test and inspection facilities include the world's largest load-power laboratory with the highest short-circuit power of 10,000Mva, the world's first laboratory capable of testing ultra-high voltage components for supergrids, as well as the Flexible Power Grid laboratory, which enables advanced testing of smart grid components. All former KEMA employees, consulting services and DNV GL's power outage service approvals and tests, battery tests, transformer oil tests and smart grid tests, including testing and verification services, will all remain with DNV GL.

Once the transfer is complete, it will provide significant benefits for both CESI and DNV GL. By combining the extensive expertise and capabilities of its laboratories with KEMA's experts, CESI will become a world leader in the independent testing of high-tech components for the energy industry. Once the process is complete, DNV GL will have a more focused global energy organization of 2000 power and renewable experts, and as electrification and decarbonization continue around the world, DNV GL will be able to scale this structure much faster to meet the technology demands of the rapidly changing future market.

CESI CEO Matteo Codazzi; "CESI will have the world's most advanced testing laboratories in the Netherlands, Italy, Germany, the Czech Republic and the United States, providing world-class Testing and inspection services to major utilities worldwide and global manufacturers of HV/MV/LV components for the energy industry. The energy sector is undergoing a profound transformation and customers have ever-evolving needs. Thanks to the combination of CESI and KEMA's respective laboratories and the joint expertise of our talented professionals, we are well on our way to forming the global market leader in independent testing and audits for the energy sector. CESI and KEMA will be uniquely positioned to provide exceptional services to our customers worldwide, to effectively address the challenges of the energy transition."

DNV GL CEO Ditlev Engel; "In 2018, following a review of our strategy for our laboratories, we are delighted to have found a company to which we can hand over ownership of KEMA Laboratories. In the energy sector, DNV GL will continue to focus on and expand our business in advanced, digital, consulting, testing and certification services in general, which help our customers achieve the integration of wind energy, solar energy and storage into energy grids. In line with this strategy, in recent years we have acquired world-class companies that are well-known for their expertise in digital platforms, solar PV and grids. We have also invested in innovations such as Instatrust, a digital marketplace for renewable energy purchase agreements, and Smart Cable Guard, a digital fault detection service for reliable grids. We will continue on this path to grow and expand our trusted consulting and certification services."