- Bakkavör Group acquires Remaining Stake in Creative Foods in Cooperation with Glitnir Bank

REYKJAVIK, 22 June  2007. Bakkavör Group has, in cooperation with Glitnir Bank,
acquired the remaining 60% stake in Creative Foods, a Chinese salad
manufacturer. Bakkavör Group and Glitnir acquired a 40% stake in the company in
March 2006 after co-founding Bakkavör China with the purpose of facilitating
the transaction and exploring further investment opportunities in China. Today,
Bakkavör Group holds an 80% share in Creative Foods while Glitnir Bank holds
20%. Glitnir provided advice and funded the deal. The acquisition price remains
confidential. The acquisition will not have a material effect on the Group's
overall trading results during this financial year. 

Creative Foods grows produce and packs around 250 salad products in five
factories and employs around 750 people, supplying supermarkets and foodservice
chains in China. Among its key customers is Yum! Brands, one of the largest
restaurant chains in the world which manages outlets such as Kentucky Fried
Chicken and Pizza Hut. Other customers include Wal*Mart, Carrefour, Starbucks
and Burger King. 

Einar Gústafsson, Managing Director of Bakkavör Asia, commented:

“Creative Foods' performance has exceeded our expectations with pro-forma sales
growth of 23% in 2006 and 15% in the first quarter of 2007. Increased demand
for healthy, convenient quality foods in China offers us great opportunities
for growth. We aim to strengthen our position in the Chinese food market, which
is forecast to grow by 30% in the next four years, and gain strong foothold in
the various other high-growing markets across Asia.” 

Magnús Bjarnason, Executive Vice President, International Banking, Glitnir,
commented: 

“We are very pleased with the growth in our China operations. Glitnir's 
strategy is to work closely with our customers on profitable projects and the
co-operation with Bakkavör is in line with that strategy. The food industry is
one of the niche segments in which Glitnir aims to grow internationally and
Creative Foods is a well run company with great growth potential. Our team in
Shanghai has done a very good job working with the Bakkavör Asia team on the
transaction.” 



For further information, please contact:

Hildur Árnadóttir, Chief Financial Officer, Bakkavör Group
Tel: +354 858-9706

Einar Gústafsson, Managing Director of Bakkavör Asia
Tel: +44 20 8728 5100

Magnús Bjarnason, Executive Vice President, International Banking, Glitnir
Tel: +354 440-4523/844-4523

	
 
About Bakkavör Group

Bakkavör Group is a leading international food manufacturing company
specialising in fresh prepared foods and produce. The Group operates
approximately 50 factories and employs over 17,000 people in seven countries.
The Group's Head Office is in Reykjavík, Iceland, and the business is listed on
the OMX Nordic Exchange in Iceland, (www.omxgroup.com/nordicexchange Ticker:
BAKK). 

Bakkavör Group was founded in 1986 and during its 20-year history the business
has grown significantly and today Bakkavör Group is a leading provider of fresh
prepared foods and produce. Bakkavör Group has attained leading market
positions in its key market areas of ready meals, pizzas, convenience salads
and leafy salads. In total, the Group makes over 4,700 products in 17 product
categories, which are developed and sold predominantly under its customers' own
brands. In addition to the UK and Iceland, the Group also has business
operations in France, Belgium, Spain, South Africa and China and is
well-positioned for further expansion. 


To subscribe to Bakkavör Group's mailing list, please log onto:
www.bakkavor.com/subscribe