Net income amounted to $79 million Hf. Eimskipafélag Íslands - Financial Overview of 2006 " Operating revenues of $1,040 million " EBITDA $64 million - EBIT $-12 million " EBITDA inclusive of discontinued operations and profit from disposal of AAT $135 million " Pre-tax loss $77 million " Net income $79 million " Total assets $1,842 million " Working capital from operating activities $20 million " Total equity at October 31 $682 million - equity ratio 37% " Current ratio 1.39 " Eimskip's financial statements to be published in euros as of November 1 2006 Magnús Þorsteinsson, Executive Chairman: "The Group performance was acceptable during the financial year ended October 31. The year was characterised by rapid external growth but at year end one of its business division was sold. EBITDA from continuing operations was $64 million for the year 2006. EBITDA inclusive of profits from discontinued operations and the disposal of Avion Aircraft Trading was $135 million. The main emphasis of Hf. Eimskipafélag Íslands is investments in business related to Eimskip's and Air Atlanta Icelandic's current operations. At the beginning of August Hf. Eimskipafélag Íslands announced intention to make a takeover bid to acquire all of the outstanding trust units of Atlas Cold Storage Income Trust (TSX: FZR.UN) at a price of CDN$7.00 cash per Unit. The aggregate acquisition cost, including assumed debt of the Trust, will be CDN $630 million. The offer was made through Eimskip Atlas Canada, Inc. a wholly-owned subsidiary of Eimskip. After the offer was extended three times Eimskip reached an agreement with Atlas Cold Storage to acquire all units of the company at the price of CDN $7.50 cash per Unit. Following an extensive review of strategic alternatives, the Board of Trustees of Atlas determined that the revised Eimskip offer is fair to unitholders and unanimously recommended that its unitholders accepted the offer. At the end of September Innovate Holding Limited, Eimskip's subsidiary, acquired the entire share capital of Corby Chilled Distribution Limited, one of the leading players in the UK temperature-controlled primary food distribution market. This acquisition furthers Eimskip's strategy to be a leading logistics provider globally, adding to its existing UK coldstore infrastructure a strong road transportation and cross dock hub network with comprehensive coverage of the UK and substantial capacity for growth. The businesses of Innovate and Corby are highly complementary and together will be able to offer our customers an enhanced range of services in temperature-controlled logistics in the UK. Eimskip also finalised the acquisition of 65% share in Containships in September. Containerships and Kursia Linija are now being merged under the name of Containerships and together these companies are one of the biggest short sea supplier in Europe. Eimskip aims to be the leading short sea supplier in the Baltic states and Russia which is a rapid growth area. In October Eimskip acquired a 100% share in the transportation company Pacific Tramper Services, Inc. (PTI) from November 1st. PTI has been leading in reefer tramping service for frozen fish in remote Alaska fisheries for over 20 years. The company has its headquarters in Seattle, US and also runs significant port logistics operations in Dutch Harbor, Alaska including, fishing vessel service, stevedoring, and a cold storage. The acquisition strengthened Eimskip's position in Alaska, i.e. with further development of coldstores and modern logistics in Dutch Harbour and China Hub tramper service to Europe and Asia. The plan is also to connect Alaska and the Northwest USA to Eimskip's worldwide cold storage and logistics network. At the end of the financial year 2006 Hf. Eimskipafélag Íslands announced that it had reached agreement for the disposal of the entire issued share capital of XL Leisure Group for USD 450 million. XL Leisure Group was recently formed from the Charter & Leisure division within the company and consisted of Excel Airways Group in the UK, Star Airlines in France and Star Europe in Germany. The Board of Hf. Eimskipafélag Íslands Avion also announces that it has reached agreement for the disposal of its 51% holding in Avion Aircraft Trading for USD 51 million or 3.5 billion ISK. The book value of the 49% retained by Hf. Eimskipafélag Íslands is USD 3 million or 200 million ISK. Part of the loan finance being provided to the buy-out team of XL Leisure Group amounting to USD 280 million is being secured by Hf. Eimskipafélag Íslands until 1 March 2008. A part of the purchase price of both XL Leisure Group and Avion Aircraft Trading is being paid by the buy-out team from a realisation of their shares in Hf. Eimskipafélag Íslands, amounting to 22% of the Company. As a result Fjárfestingarfélagið Grettir acquired additional share in the company. After the end of the financial year a shareholders meeting approved the proposal to change the name of Avion Group to Hf. Eimskipafélag Íslands. Two new members joined the Board of Directors, Sindri Sindrason and Thor Kristjánsson replaced Arngrímur Jóhannesson and Eamonn Mullaney. In December Eimskip opened up its third office in China and signed an agreement with the port officials in Qingdao regarding the operation of the biggest cold store in Qingdao which is a very exciting project. In January Eimskip announced the acquisition of an additional 60% equity stake in the Dutch cold store company Daalimpex beheer B.V. in the Netherlands. Eimskip previously held 40% of Daalimpex's equity interest. Daalimpex is one of the largest cold store companies in Europe and operates six cold stores in the Netherlands. This acquisition significantly strengthens Eimskip's reefer logistics in Europe and is a good platform for further development of reefer service in Europe. This acquisition is part of Eimskip's strategy to be a key international player in temperature-controlled cargo globally. Daalimpex is the biggest cold store company in the Neatherlands and one of the biggest in Europe. With the acquisition of a majority stake in Innovate and Corby and now the acquisition of 100% share in Daalimpex, Eimskip has become a leading European cold store company and a leading cold store company globally with the acquisition of Atlas Cold Storage in Canada." Further information can be found at the attached news release