Eimskip acquires 100% share in Innovate Holdings in the UK -Paid with new shares in Hf. Eimskipafélag Íslands Eimskip is pleased to announce the acquisition of an additional 45% stake in Nottingham-based Innovate Holdings. Innovate is one of the biggest temperature controlled cargo in the UK with 30 coldstores at 11 locations in the UK. Eimskip previously held a 55% share in Innovate. The purchase price is 30,3 GBP or approximately 4 billion ISK. The purchase price will be paid with new shares in Eimskip. A total number of 83,109,531 shares will be issued at the price of 45 ISK per share. Innovate will continue to be managed by the current key management which are Pete Osborne, Stephen Savage and Stephen Dargavel. They all have extensive experience and expertise in logistics and property development. Due to Eimskip's recent growth in temperature-controlled cargo globally the management of the company will be strengthened by establishing a special management team which focuses on temperate controlled storage and distribution and property development globally. Pete Osborne, Stephen Savage and Stephen Dargavel will lead this management team and become one of the biggest shareholders in Eimskip holding 4% - 5% of total outstanding shares. Baldur Guðnason, CEO of Eimskip: “The acquisition of Innovate further strengthens Eimskip's strategy to be a key international player in temperature-controlled cargo globally. Eimskip has controlled 55% share in Innovate since May 2006 and Innovate has developed rapidly since both through organic growth and acquisitions. Innovate has developed the leading temperature controlled logistics business in the UK and will now develop into international markets with Eimskip. I am very pleased to have Stephen Dargavel, Stephen Savage and Pete Osborne joining our global management team in Eimskip and leading that part of our business.” Stephen Savage, joint CEO of Innovate: “We decided to merge with the Eimskip business after 12 months of highly succesful partnership. Innovate, which will continue to be managed on a day to day basis by myself, Stephen and Pete, will be developed to be the cornerstone of Eimskip's global temperature controlled business. Our customers and staff will benefit from the combined financial strength and expertise of the merged business and we will now be able to offer a total supply chain solution.” Innovate Logistics is a major operator in all segments of the logistics market in the UK, with a turnover of £200m and over 3 million sq ft (450 thousands of tonnes) of warehousing and in excess of 1,200 vehicles and temperature controlled trailers. Innovate employes approximately 2,000. Innovate's anchor customers are f.ex. Bakkavör, Tesco, Somerfield, Sainsbury's, Nestlé, and Heinz. Further information: Baldur Guðnason, CEO of Eimskip, phone: 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 145 million. It owns or 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.