Further to the announcement on 27 May 2008, Alfesca is pleased to announce that it has entered into an agreement with ELL162 ehf, the investment company of His Highness Sheikh Mohamed bin Khalifa Al-Thani, under which the investment company will subscribe for 850,000,000 shares in the capital of Alfesca. The new shares will be issued at the subscription price of ISK 6.45 per share and when completed will represent 12.6% of the increased share capital of the Company. The subscription is conditional, among other matters, on publication of a prospectus by Alfesca. It is envisaged that the investment will be completed within the next 8 weeks. The investment by His Highness is the result of a close dialogue and relationship that has built up over the last 2 years and the board of directors of Alfesca warmly welcome His Highness as a significant shareholder during an exciting period in the development of Alfesca. Enquiries: Antony Hovanessian Business Development Director +354 477 7000