- Strategic review of Eimskip's aviation related assets


Hf. Eimskipafélags Íslands Board of Directors has decided to assign Hannes
Hilmarsson CEO Air Atlanta Icelandic and ABN Amro Bank to undertake a strategic
review of Eimskip's aviation related assets, including to find potential buyers
for 100% of the shares in Air Atlanta hf. Projections for the current financial
year estimate that 20% of Hf. Eimskipafélags Íslands turnover will be from Air
Atlanta Icelandic. The review is expected to be finalised within the next
couple of months. 

Additionally Hf. Eimskipafélag Íslands intends to sell 49% share in Avion
Aircraft Trading (AAT). Hf. Eimskipafélag Íslands and the owners of 51% share
are working jointly on selling the 49% share. The 51% share in AAT is owned by
Artic Partners. Artic Partners is owned by Hafþórs Hafsteinssonar, Chairman of
AAT, Arngríms Jóhannssonar, Board Member of AAT and other directors of AAT. The
sale is expected to be finalised within the next couple of weeks. 

Hf. Eimskipafélag Íslands aims to grow further in transportation, shipping and
coldstores globally and will focus on further opportunities in that area. 

The proceeds from the disposal will be used for further growth and repayment of
loans. The effects of the sale, without profit on the sale, on the financial
results of the current year is unsubstantial. Estimated effects on the balance
sheet of Hf. Eimskipafélag Íslands is approximately 300 million euros or 25
billion ISK. 

Baldur Guðnason, CEO of Eimskip, on the strategic change:
“I see many opportunities in building a strong network in cold stores globally.
We find the business area profitable and more stable for the company's
shareholders in the long term. Demand for transportation and storage on
refrigerated good is constantly increasing worldwide and we aim to be a key
player in the future growth.” 

Hannes Hilmarsson, CEO of Air Atlanta:
“We consider this situation an opportunity for Air Atlanta Icelandic.  The
company has grown to become a leading global player in the ACMI market, and has
built up a strong position in the cargo wide body aircraft market following
fleet restructuring in 2006. Air Atlanta Icelandic is in excellent situation to
expand its fleet, and does therefore present a valuable position in the fast
growing long-haul air cargo market.” 


Further information: Baldur Guðnason, CEO of Eimskip, phone: 525 7202

About Eimskip
Hf. Eimskipafelag Islands operates at 183 operational bases in 31 countries and
has over 100 temperature-controlled cold storage facilities worldwide as well
as a fleet of approximately 25 aircrafts, 40-50 vessels and 1,350 trucks and
trailers. Hf. Eimskipafelag Islands employees worldwide a total number of
9,500. 

About Air Atlanta Icelandic
Air Atlanta Icelandic is the largest passenger and cargo ACMI service provider
in the world. Utilizing a fleet of approximately 25 Boeing and Airbus aircraft
the company provides passenger and cargo aircraft on a short or long-term basis
to airlines needing extra capacity.