Robust 16.2% proforma sales growth and 9.9% EBIT from core business in third quarter • Sales for the third quarter totalled EUR 170.6 million, compared with 66.1 million for the same period the year before, representing an increase of 158.1%. Proforma sales of Marel Food System and Stork Food Systems core business (excluding the Food and Dairy division of Stork) in the third quarter of 2008 totalled EUR 157.4 million, which is an increase of 16.2% compared with the same period in 2007. • Profit from operations (EBIT) for the third quarter was EUR 14.5 million, which is 8.5% of sales, compared with EUR 1.8 million (2.7% of sales) for the same period the year before. Proforma profit from operations (EBIT) from the core business was EUR 15.7 million, which is 9.9% of sales, compared with 7.3 million (5.4%) the year before. Good 11% proforma sales growth for the first nine months with 9.1% EBIT from core business • Sales for the first nine months of 2008 totalled EUR 389.6 million compared with 210.9 million for the same period the year before, which is an increase of 84.7%. Proforma sales of Marel Food Systems and Stork Food Systems core business for the first nine months of the year amounted to EUR 475.2 million, which is an increase of 11% compared with the same period in 2007. • Profit from operations (EBIT) for the period January to September 2008 was EUR 27.9 million, which is 7.1% of sales, compared with EUR 8.4 million (4.0% of sales) the year before. Proforma profit from operations (EBIT) for the first nine months of the year was EUR 43.4 million, which is 9.1% of sales, compared with 30.0 million (7.0% of sales) for the same period the year before, representing an increase of 45%. • Net profit for the first nine months of 2008 was EUR 15.3 million compared with 2.7 million in 2007. • Net interest bearing debt amounted to EUR 384.4 million at the end of September 2008. • Equity totalled EUR 307.5 million and the equity ratio was 32.5% at the end of September 2008. • A successful private placement for approximately EUR 10 million, mainly to pension funds, completed on 16 October. Hörður Arnarson, CEO: “We are pleased with the operational results for the third quarter and the first nine months of the year. Proforma results of the company's core business for the third quarter are characterised by strong 16% internal growth. At the same time, sales and administration costs remain unchanged resulting in a 45% increase in proforma profit from operations (EBIT) from core business for the first nine months of the year, which corresponds to 9.1% of sales. This is fully in line with the company's goals. In the third quarter, we continued to focus on the integration of the companies that we bought in the past three years and which have transformed us into the leading producer of equipment and systems for the food processing industry worldwide. The rationalisation measures we have undertaken have delivered the improved operational results that we see today, with Marel Food Systems‘ profit from operations having steadily grown during the course of the year. Conditions in the financial markets are unusual, to say the least. The financial crisis will affect all industries to some degree but we believe that the food industry, where we operate, will not be as affected as most other industries. Consumers will without a doubt cut expenditures on travel, new cars or luxury goods but they will continue to eat, even if their consumption habits will change. The food industry has always adapted very quickly to changes in the environment and that is why we believe that a possible slowdown in the industry will not last as long as in most other sectors.“ Prospects The operational results are fully in line with expectations at the beginning of the year that performance would improve considerably during the course of the year. The past three years have been characterised by rapid external growth but in the last two quarters the emphasis has been placed on internal growth and increased profitability. The integration and reorganisation of the companies that were acquired has gone well and the expected synergies and increased efficiency are beginning to materialise. At the beginning of the year, it was expected that the measures undertaken - which included integration of the companies‘ sales networks and product lines, as well as a reduction in the number of employees - would begin to materialise fully in the third and especially fourth quarters. Proforma profit from operations (EBIT) for the third quarter is 9.9% of sales (9.1% for the first nine months of the year) and the company‘s stated goal of 9% for the year as a whole remains unchanged. The substantial drop in raw material prices in recent weeks will have a positive effect on the company, both directly through reduced production costs related to the decrease in the price of stainless steel, and indirectly through lower corn prices, which will improve the operational results of our customers. The effects of the international financial crisis on the company‘s operations have so far been minimal and the results for the year are expected to be more or less in line with expectations at the beginning of the year. There has not been a material change in sales activity. However, it is beginning to take more time for the company‘s customers to secure financing and this could result in reduced order intake as projects are delayed. The company‘s growth in coming quarters can therefore be expected to be reduced compared to what it has been in past quarters. Actions have already been taken to achieve further economies of scale by harnessing the synergies between the companies. Nevertheless, the food industry is relatively well placed and the effects of the financial crisis are expected to be smaller in magnitude and shorter in duration than in other sectors. In fact, the downturn of the international economy will create opportunities for companies in the food processing industry in the months ahead. Consumer habits will change and they have already begun to do so. The consumption of less expensive proteins, primarily poultry and fish, is likely to increase substantially. Consumers will also eat out less in fine restaurants and shop more for “ready-made meals“. Moreover, the drop in base interest rates will make it easier for food processing companies to make the investment required to be able to respond to changing consumer demands. The long-term prospects of the company are therefore good and our long term expectations about the future remain unchanged. For further information, contact: Hörður Arnarson, CEO Tel: (+354) 563-8000