The Board of Bakkavör Group hf. has approved a discretionary company share option plan, the Bakkavör Group hf. Company Share Option Plan 2008, which comes into effect today, 23 May 2008. According to the Plan, today the Board of Bakkavör Group granted options over an aggregate of 41,694,568 ordinary shares at an exercise price of 36 ISK per share to key employees of Bakkavör Group hf. The exercise price is the market value of a Bakkavör Group share at the close of business on 22 May 2008. The options will vest after three years starting from the grant date and will be available for exercise for two years, between 23 May 2011 and 22 May 2013. The options will lapse on 23 May 2013. Exercise is conditional upon the option holder remaining in continuous employment with Bakkavör Group hf. until the vesting date.