- The Board of Directors of Icelandic Group have agreed to increase share capital with market value of € 30 million

Loss € 29.3 million in 2007

•  Sales € 1,384.4 million in 2007 and € 327.8 million in Q4

•  Decrease in income was 5.9% in the year, 8.5% in Q4 compared to Q4 last year.

•  Earnings before interest, taxes and depreciation (EBITDA) amounted to € 28.3
million in the year and € 1.4 million in Q4 

•  Operating loss (EBIT) € 2.1 million in the year and € 14.8 million in Q4

•  Impairment losses € 11.8 million

•  Net loss amounted to € 29.3 million in year and € 29.0 million in Q4

•  Cash provided by operating activities before taxes and interest amounted to
€ 57.2  million 

•  Total assets amounted to € 796.1 million - equity ratio 16.6%

•  Return on equity negative by 16.7%

•  The Board of Directors will propose an increase in share capital with market
value of € 30 million 




Finnbogi Baldvinsson, CEO of Icelandic Group:
“The year 2007 was an extremely difficult year for Icelandic Group, with Q4
2007 showing the poorest results. The restructuring process that the Group has
continually said to be in progress has been delayed and it is now apparent that
the originally targeted objectives were unrealistic. The process of simplifying
the very complex operations of the Group is now in force with the divestments
and closing of plants and offices. This process has allowed us to clarify the
future objectives of each individual operational unit.  The results of this
process are already showing and the Group is now in a strong enough position to
take on its role as a leader in the seafood industry. 

There was a large reduction in sales in Icelandic USA in the start of Q4 and
the economic recession in the USA has had a large impact on the company's
operations. It also emerged that the operations of Pickenpack Gelmer in France
were poorer than previously estimated. These factors, among others, resulted in
Icelandic Group failing to reach the targeted EBITDA, as had been introduced in
the Q3 results of 2007. 

I foresee that the Group will have reached a balance in Q3 2008 and that the
Group will show a profit in 2009. The Group will now focus on operations and
leverage acquisitions and purchases of companies are now in the past. One of
Icelandic Group's main tasks is to react to changed operations of the Group,
which are characterised by increased raw materials along with increased
financial costs with a decrease in other operational costs and price increase
of produce.

The fact that the Board of Directors of Icelandic Group has agreed to propose
to the Annual General Meeting an increase in share capital with a market value
of € 30 million sends a strong message to the market.  The Board is showing
its genuine intent to support the plans on simplifying the Group's operations. 
This is also a vote of confidence on the goals that have been set for 2009
profitability.” 



For further information, please contact:  

Finnbogi A. Baldvinsson, CEO of Icelandic Group, tel. +49 1723 198 727