On 5 March 2010, Bakkavör Group hf made a public announcement on its shareholders' meeting scheduled for 26 March 2010. Item 2 of the meeting's agenda proposes to “convert the company to a private limited company, in accordance with the provisions of Article 132 of Act No. 2/1995 on Public Limited Companies, and to subsequently delist the company from NASDAQ OMX Iceland.” Companies whose shares have been admitted to trading on a stock exchange are subject to certain rules imposing various obligations on them over and above other companies. These obligations are stipulated in an agreement between the Exchange and Bakkavör, the Rules of the Exchange, with which the company has undertaken to comply, the Act on Stock Exchanges and other laws and rules governing the financial markets. The laws referred to here are specific lex specialis laws, which prevail over the general rules of the Act on Public Limited Companies. When a public company has been converted to a private company, its shares are no longer eligible for trading on a stock exchange. Consequently, the Exchange considers Bakkavör Group hf's conversion from a public to a private company cannot take place until its shares have been removed from trading on the Exchange. Under paragraph 2 of Article 24 of the Act No. 110/2007 on Stock Exchanges, it is the Exchange that decides whether and, if so, when the shares of an issuer are to be removed from trading, cf. also Article 1.1.27 of the Exchange's Rules for Issuers of Financial Instruments. In the event that Bakkavör is converted from a public company to a private company prior to its removal from trading from the Exchange, thereby contravening applicable laws, the Exchange will deem this to be a violation of the company's agreement with the Exchange as well as of the aforesaid laws and rules. The Exchange will notify the Icelandic Financial Supervisory Authority of such a violation, in accordance with legal obligations incumbent upon the Exchange, cf. paragraph 2 of Article 21 of Act No. 110/2007 on Stock Exchanges.