- Financial results in the second quarter 2007 in line with expectations

Hf. Eimskipafélag Íslands - Financial Overview of the second quarter of 2007

•  Operating revenues of EUR 397 million
•  Operating expenses of EUR 378 million
•  EBITDA EUR 33 million - EBIT EUR 10 million 
•  Net gain EUR 0,2 million 
•  Total assets EUR 1,848 million
•  Working capital from operating activities EUR 27 million
•  Total equity at January 31 EUR 535 million  - equity ratio 29%
•  Current ratio 0.93

Baldur Gudnason, CEO of Eimskip:

“Eimskip's financial performance in the first half year, ended April 30 2007,
was in line with management's expectations. Turnover for the first half of the
year is approximately EUR 800 million, which is more then the half of projected
turnover in the year 2007 of EUR 1,450 million. EBITDA was EUR 65 million which
is about half of this year's target. Thereof EUR 60 million are generated from
the shipping and logistics activities while the avation units generated EUR 5
million. Operations continue to be characterised by steady growth, both in
revenues and profits. Much effort has been put into integration and
restructuring of new units within the Group. 

At the beginning of the period Atlas Cold Storage, Containerships, Corby
Chilled and Daalimpex entered the financial statements of the Group. These
business units have been restructured and successfully integrated into the
operations of Eimskip. However, we have experienced substantial expenses
accordingly. 

New management team was appointed at Atlas. Subsequently considerable personnel
reforms took place, price structure was revised and information systems
improved. These activities have resulted in better financial performance of
Atlas Cold Storage. 

From the beginning it was evident that Atlas' real estate were of considerable
value and the inital premise of the investment was to partially dispose these
properties and use the proceeds for repayments of loans. When these assets will
be sold, which will be before the end of 2007, Eimskip will lease them back for
operation. 

Eimskip is currently going through a transitional period which is characterized
by high growth as well as increased leverage in the short run. Accordingly the
financial expenses were substantial in the first half of 2007. During the next
6-18 months the group's priority is decreasing its debts in order to ensure top
financial results to the advantage of the group's shareholders. Sales of Atlas
properties as well as the Group's aviation related assets is a part of this
process. 
Hf. Eimskipafélag Íslands aims to grow further in transportation, shipping and
coldstores globally and focuses on further opportunities in that area. Our long
term strategy is to build a worldwide network of temperature controlled
transportation and warehousing services.  We have simplified our operation and
focus on further growth in temperature controlled transportation and storage.
We are currently a key international player in this field and we strive to
seize an increased share in upcoming growth of the industry.”