Bakkavör Group acquires a 48% share in a food and beverage provider in Hong Kong

Reykjavik, 14 March 2008, Bakkavör Group has acquired a 48% share in the food
and beverage supplier Gastro Primo in Hong Kong, with a non-binding call option
to acquire the remaining 52% in 2010. The consideration price remains
confidential. 

Gastro Primo specialises in supplying food service companies, catering
establishments and restaurants, as well as retailers in Hong Kong and Macau
with high quality food and beverage products. Its diverse product range
includes, for example, ready meals, soups, sauces, fruits, vegetables, salads,
sandwiches, as well as fruit juices and smoothies. The company was established
in Hong Kong in 1990 and currently employs over 170 people in Hong Kong and
Macau. Its turnover in 2007 was US$11 million. 

Gastro Primo will be accounted for as an associate company from the acquisition
date. The acquisition will not have a material effect on the Group's financial
results. 

Hong Kong - a sophisticated market

Hong Kong consumers are some of the most sophisticated in Asia. The presence of
Western companies has influenced the consumer culture far ahead of other Asian
countries and Hong Kong remains one of the world's busiest fast-food markets,
with a concentration of international fast-food chains, such as McDonald's and
KFC in the territory. Hong Kong is also a major retailing centre of Southeast
Asia with advanced supermarket and convenience store developments compared with
other regions. 

Ágúst Gudmundsson, CEO Bakkavör Group:

“We are pleased to announce Bakkavör Group's further development in China with
the investment in a food and beverage provider in Hong Kong, which is one of
the most sophisticated food markets in South East Asia. Gastro Primo is a
well-run business, with an  experienced management team, strong customer
relationships and a good potential for further growth. We see opportunities in
co-operation with our existing Chinese businesses that will further support our
expansion and future growth in China.” 

Further Information:

Ágúst Guðmundsson, CEO
Tel: +354 550 9700

Ásdís Pétursdóttir, IR
Tel: +354 858 9715


About Bakkavör Group

Bakkavör Group is a leading international food manufacturing company
specialising in fresh prepared foods and produce. The Group operates 57
factories and employs around 20,000 people in nine countries. The Group's Head
Office is in Reykjavík, Iceland, and the business is listed on the OMX Nordic
Exchange in Iceland (www.omxgroup.com/nordicexchange Ticker: BAKK). 

The Group's vision is to be recognised and respected as the world's leading
fresh prepared foods and produce provider. Bakkavör Group has attained leading
market positions. In total, the Group makes over 6,000 products in 17 product
categories, which are developed and sold predominantly under its customers' own
brands. In addition to the UK and Iceland, the Group also has business
operations in France, Belgium, Spain, South Africa, China, the Czech Republic
and the United States. 


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