The Board of Directors of Hf. Eimskipafélags Íslands has decided to issue 83,109,531 new shares in the company at 45 ISK per share to pay for 45% share in Innovate Holdings according to authorisation in art. 4 in the company's Articles of Association. All the new shares will be paid to Innovate's former owners; Stephen Dargavel, Stephen Savage and Pete Osborne. After the issue of new shares they are among the biggest shareholders in Hf. Eimskipafélag Íslands, holding 4.43% of total outstanding shares. Total number of outstanding shares is currently 1,793,599,135. Total number of outstanding shares after the issue of new shares will be 1,876,708,666. It is expected that the new shares will be listed on the Main List of OMX Nordic Exchange in Iceland before the end of June 2007. Trading is expected to commence the day after listing. Hf. Eimskipafélag Íslands' shares are all in one class. The new shares will belong to the same class and enjoy the same rights as other Hf. Eimskipafélag Íslands shares, and grant their owners' rights in the Company from the day when the new shares have been issued in the book-entry system of the Icelandic Securities Depository. Further information: Baldur Guðnason, CEO, telephone: +354 525 7202 About Eimskip Hf. Eimskipafelag Islands is one of the largest companies in Iceland and is publicly listed on the Icelandic Stock Exchange. The company has over 90 years of experience in providing transportation, warehousing and logistics services in Europe, primarily in the North Atlantic region. Operating with 200 locations around the world in over 30 countries with a total of 10,000 employees, Hf. Eimskipafelag Islands has global reach. It has an annual turnover exceeding EUR 1,450 million and estimated 2007 EBITDA of EUR 135 million. It operates 50 vessels, 100 cold-store facilities, 25 wide body cargo aircraft and 2,000 trucks and trailers. Eimskip is traded on the Icelandic Stock Exchange under the symbol of HFEIM. To find out more about Eimskip, visit our website at www.eimskip.is.