Icelandic Salmon AS

Quarterly Report • Nov 16, 2007

Icelandic Group Plc.

1 January - 30 September 2007 Condensed Consolidated in Euro Interim Financial Statements

105 Reykjavík Icelandic Group Plc. Borgartún 27

Reg. no. 461296-2119

Contents

Endorsement by the Board of Directors
and the CEO	3	Statement of Changes in Equity	6
Income Statement	4	Statement of Cash Flows	7
Balance Sheet	5	Notes	8

Statement of Changes in Equity
Statement of Cash Flows	7
Notes	8

Interim Financial Statements of Icelandic Group Plc. 30 September 2007 _______________________________________________ 2 _______________________________________________

Endorsement by the Board of Directors and the CEO

The condensed consolidated interim financial statements of Icelandic Group Plc. for the period from 1 January to 30 September 2007 have been prepared in accordance with International Financial Reporting Standards (IFRSs) for Interim Financial Statements (IAS 34). The interim financial statements comprise the consolidated interim financial statements of Icelandic Group Plc. and its subsidiaries.

Icelandic Group Plc. has signed a letter of intent on sale of 81% share in Icelandic Holding Germany GmbH, the parent company of Pickenpack Hussmann & Hahn GmbH, Germany and Pickenpack Gelmer SAS, France. It is expected that the final agreements will be executed in the coming weeks at which time further details will be disclosed concerning the impact of the acquisition on Icelandic Group's operation and financial position.

According to the income statement loss for the period from 1 January to 30 September 2007 amounted to € 0.3 million. The Group's income amounted to € 1,061.4 million for the period. According to the balance sheet total assets at the end of September amounted to € 860.2 million and stockholders´equity amounted to € 167.7 million. The equity ratio of the Group was 19.5%.

The Board of Directors and the CEO of Icelandic Group Plc. hereby confirm the Company's consolidated interim financial statements for the period from 1 January to 30 September 2007 by means of their signatures.

Reykjavík, 16 November 2007.

Board of Directors:

Magnús Þorsteinsson Baldur Örn Guðnason Guðmundur P. Davíðsson Steingrímur H. Pétursson

CEO:

Björgólfur Jóhannsson

Consolidated Interim Income Statement

for the nine months ended 30 September 2007

				Q 3			Q 1 - 3
			1 July - 30 September				1 January - 30 September
	Notes		2007		2006		2007		2006
Sales			327,428		367,896		1,056,590		1,113,004
Cost of goods sold		(	293,661)	(	323,954)	(	949,192)	(	990,332)
Gross profit			33,767		43,942		107,398		122,672
Other operating income			1,934		3,196		4,820		8,217
Operating expenses		(	31,712)	(	40,148)	(	99,182)	(	111,834)
Share of (loss) profit of associates		(	274)		748	(	328)		884
Operating profit			3,715		7,738		12,708		19,939
Finance income			2,453		360		15,982		5,318
Finance expenses		(	11,234)	(	7,783 )	(	31,849 )	(	22,176 )
Net finance costs	3	(	8,781)	(	7,423)	(	15,867)	(	16,858)
(Loss) profit before income tax		(	5,066)		315	(	3,159)		3,081
Income tax	4		2,517		638		2,813		171
(Loss) profit for the period		(	2,549)		953	(	346)		3,252
Attributable to:
Equity holders of the parent company		(	2,601)		953	(	640)		3,248
Minority interest			52		0		294		4
	(Loss) profit for the period	(	2,549)		953	(	346)		3,252

Earnings per Share:

Basic & diluted (loss) earnings per share
(each share is 1 Icelandic króna)	(	0.0009)	0.0003 (	0.0001)	0.0011

Consolidated Balance Sheet as at 30 September 2007

	Notes	30.9.2007	31.12.2006
Assets:
Property, plant and equipment		119,374	124,403
Intangible assets		244,627	256,077
Investment in equity accounted investees		1,693	2,057
Other investments	5	23,692	11,062
Bonds and other long-term receivables		7,655	3,936
Deferred tax assets		11,864	9,747
Total non-current assets		408,905	407,282
Inventories		263,987	299,157
Trade and other receivables		162,329	179,089
Cash and cash equivalents		24,991	21,222
Total current assets		451,307	499,468
Total assets		860,212	906,750

Equity:

Share capital			36,661		36,912
Share premium			150,447		151,892
Reserves (deficit)	6	(	20,997)	(	12,564)
Accumulated deficit		(	640)		0
Total equity attributable to equity holders of the parent			165,471		176,240
Minority interest			2,208		1
Total equity			167,679		176,241
Liabilities:
Loans and borrowings	7		194,522		219,752
Deferred income tax liability			8,292		8,430
Total non-current liabilities			202,814		228,182
Loans and borrowings	7		350,802		342,460
Trade and other payables			138,917		159,867
Total current liabilities			489,719		502,327
Total liabilities			692,533		730,509
Total equity and liabilities			860,212		906,750

Consolidated Interim Statement of Changes in Equity for the nine months ended 30 September 2007

	Notes	Share capital	Share premium		Reserves (deficit)	Retained earnings (accumulated deficit)	Minority interest		Total equity
Changes in equity in Q1-3 2006:
Equity as at 1.1.2006		27,570	84,873		3,377	882	39		116,741
Currency fluctuations on subsidiaries not reporting in euros Profit for the period				(	10,941)	3,248	4	(	10,941) 3,252
Total recognised income and expense for the period				(	10,941)	3,248	4	(	7,689)
New shares issued		9,342	77,510						86,852
Minority interest, change							10		10
Equity as at 30.9.2006		36,912	162,383	(	7,564)	4,130	53		195,914
Changes in equity in Q1-3 2007:
Equity as at 1.1.2007		36,912	151,892		(12,564)	0	1		176,241
Currency fluctuations on subsidiaries not reporting in euros				(	9,499)			(	9,499)
Loss for the period						( 640)	294	(	346)
Total recognised income and expense for the period				(	9,499)	( 640)	294	(	9,845)
Own shares purchased	(	251)	( 1,445)		1,066			(	630)
Minority interest, change							1,913		1,913
Equity as at 30.9.2007		36,661	150,447	(	20,997)	( 640)	2,208		167,679

Consolidated Interim Statement of Cash Flows

for the nine months ended 30 September 2007

		Q1-3
			1 January - 30 September
	Notes	2007		2006
Cash flows from operating activities:
Operating profit		12,708		19,939
Difference between operating profit and cash from operations:
Gain on sale of assets	(	106)	(	3,501)
Negative goodwill		0	(	1,500)
Depreciation and amortisation		14,345		15,021
Share of loss (profit) of associates		328	(	884)
Change in operating assets and liabilities		21,730	(	41,269)
Cash generated from (used in) operations		49,005	(	12,194)
Interest income received		830		976
Interest expenses paid	(	23,727)	(	20,385)
Income tax paid	(	61)	(	3,562)
Net cash from (used in) operating activities		26,047	(	35,165)
Cash flows from investing activities:
Investment in property, plant and equipment	(	10,852)	(	21,757)
Proceeds from sale of property, plant and equipment		1,687		7,436
Investment in intangible assets	(	1,163)	(	494)
Acquisition of subsidiaries, net of cash acquired	(	548)		3,484
Proceeds from sale of shares in subsidiaries		2,549		0
Investment in shares in associated companies		0	(	1,767)
Investment in shares in other companies		0	(	462)
Proceeds from sale of shares in other companies		1,170		214
Increase in bonds and other receivables	(	3,870)	(	4,852)
Net cash used in investing activities	(	11,027)	(	18,198)
Cash flows from financing activities:
Minority share in capital stock		67		14
Purchase of own shares	(	1,696)		0
Long-term debt proceeds		5,326		25,481
Long-term debt repaid	(	45,292)	(	17,852)
Short-term debt, proceeds		31,230		44,392
Net cash (used in) from financing activities	(	10,365)		52,035
Increase (decrease) in cash and cash equivalents
		4,655	(	1,328)
Effect of exchange rate fluctuations of cash held	(	886)	(	1,182)
Cash and cash equivalents at 1 January		21,222		29,883
Cash and cash equivalents at 30 September		24,991		27,373
Investing and financing activities not affecting cash flows:
Investments in subsidiaries		0	(	121,062)
Share issue		0		86,852
Short-term borrowings		0		34,210

Interim Financial Statements of Icelandic Group Plc. 30 September 2007 ____________________________________________ 7 All amounts are in thousands of euro

Significant accounting policies

a. Reporting entity

Icelandic Group Plc. is a company domiciled in Borgartún 27, Reykjavík, Iceland. The consolidated interim financial statements of the Company as at and for the nine-month period ended 30 September 2007 comprise the Company and its subsidiaries, together referred to as the "Group" and the Group´s interest in associates. The Group is involved in manufacturing and marketing of seafood in international markets. The consolidated interim financial statements were authorised for issuance by the board of directors on 16 November 2007.

b. Statement of compliance

The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard IAS 34, Interim Financial Reporting . They do not include all of the information required for a complete set of consolidated annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2006.

Certain comparative amounts have been reclassified to conform with the current year´s presentation.

c. Basis of preparation

The accounting policies and methods of computation applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its financial statements as at and for the year ended 31 December 2006. The consolidated financial statements for the year ended 31 December 2006 are available at the Company´s website, www.icelandic.is and at the Nordic Stock Exchange website, www.omxgroup.com.

The condensed consolidated interim financial statements are prepared in euro, which is the Company´s functional currency, rounded to the nearest thousand. They are prepared on a historical cost basis except that shares in listed companies and derivative financial instruments are stated at their fair value.

Segment Reporting

1. Segment information is presented in respect of the Group's business segments and geographical segments. The primary format, business segments, is based on the Group´s management and internal reporting structure.

Inter-segment pricing is determined on an arm's length basis.

Segment results, assets, liabilities and cash flow include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Business segments

Companies that prosess seafood into value added products are grouped as production companies. Sales- and marketing companies are companies that handle the sales and marketing of seafood without further processing. Holding and service companies are the parent company and companies that provide logistic and quality service to other group companies.

Notes, contd.:

1. Contd.:

Geographical segments

In presenting information on the basis of geographical segments, segment revenues are based on the geographical location of the assets.

Business segments

1 January to 30 September 2007

Income Statement:	Production companies		Sales and marketing companies		Holding and servicing companies		Eliminations		Consolidated
Sales to external customers	741,788		310,834		3,968		0		1,056,590
Inter-segment sales	106,653		148,966		2,547	(	258,166)		0
Total segment sales	848,441		459,800		6,515	(	258,166)		1,056,590
Segment results	7,212		5,543	(	47)		0		12,708
Net finance costs	( 17,027)	(	5,808)		6,968		0	(	15,867)
(Loss) profit before income tax	( 9,815)	(	265)		6,921		0	(	3,159)
Income tax	3,721	(	436)	(	472)		0		2,813
(Loss) profit for the period	( 6,094)	(	701)		6,449		0	(	346)

1 January to 30 September 2006

Income Statement:	Production companies		Sales and marketing companies		Holding and servicing companies		Eliminations		Consolidated
Sales to external customers	752,758		335,488		24,758		0		1,113,004
Inter-segment sales	109,446		161,767		5,081	(	276,294)		0
Total segment sales	862,204		497,255		29,839	(	276,294)		1,113,004
Segment results	13,226		5,011		1,702		0		19,939
Net finance costs (	13,478)	(	3,675)		295		0	(	16,858)
(Loss) profit before income tax (	252)		1,336		1,997		0		3,081
Income tax	786	(	259)	(	356)		0		171
Profit for the period	534		1,077		1,641		0		3,252

Geographical segments

1 January to 30 September 2007			Europe
	USA	UK	without UK	Asia		Eliminations	Consolidated
Sales	272,029	317,522	408,641	316,564	(	258,166)	1,056,590
1 January to 30 September 2006
Sales	276,406	370,528	394,679	347,685	(	276,294)	1,113,004

Quarterly Summary

• 2007 Q1 Q2 Q3 Total 385,161 344,001 327,428 1,056,590 ( 312,604) 342,927) ( 293,661) ( 949,192) ( 42,234 31,397 33,767 107,398 1,656 1,230 1,934 4,820 ( 33,136) 34,334) ( 31,712) ( 99,182) ( ( 11) 43) ( 274) ( 328) ( 9,513 520) ( 3,715 12,708 ( 1,214) 5,872) ( 8,781) ( 15,867) ( 3,641 1,734) ( 5,066) ( 3,159) ( ( 1,650 2,517 2,813 1,354) 2,287 84) ( 2,549) ( 346) ( Attributable to: 2,280 319) ( 2,601) ( 640) ( 7 235 52 294 2,287 84) ( 2,549) ( 346) ( 14,170 4,295 8,506 26,971 3.7% 1.2% 2.6% 2.6% 2006 Q1 Q2 Q3 Q4 Total 382,207 362,901 367,896 358,312 1,471,316 ( 324,085) 340,533) ( 323,954) ( 326,274) ( 1,314,846) ( 41,674 38,816 43,942 32,038 156,470 1,411 3,610 3,196 2,370 10,587 ( 36,363) 37,083) ( 40,148) ( 48,699) ( 162,293) ( 0 136 748 184) ( 700 6,002 6,199 7,738 14,475) ( 5,464 ( 5,562) 3,873) ( 7,423) ( 7,147) ( 24,005) ( 2,129 637 315 21,622) ( 18,541) ( ( 648 638 6,947 7,118 1,115) 1,014 1,285 953 14,675) ( 11,423) ( Attributable to: 1,014 1,281 953 14,675) ( 11,427) ( 0 4 0 46 50 1,014 1,285 953 14,629) ( 11,377) ( 10,449 10,939 13,572 1,986 36,946 2.7% 3.0% 3.7% 0.6% 2.5% Minority interest ................................................ Operating profit (loss) - EBIT .............................. Profit (loss) for the period .................................... EBITDA ................................................................. Profit (loss) for the period .................................... Income tax ............................................................. Equity holders of the parent company ................ Finance costs .......................................................... Profit (loss) before income tax .............................. Other operating income .......................................... Operating expenses ................................................ EBITDA ratio ........................................................ Sales ....................................................................... Cost of goods sold ................................................. Gross profit ............................................................ Sales ............................................ Cost of goods sold ....................... Gross profit ................................. Profit (loss) for the period ........ Operating expenses ..................... Net finance costs ......................... Operating profit (loss) - EBIT ... accounted investees .................. EBITDA ...................................... Profit (loss) for the period.......... Minority interest .......................... Equity holders of the parent EBITDA ratio .............................. Profit (loss) before income tax Income tax ................................... company ................................... Other operating income ............... Share of profit (loss) of equity Share of loss of equity accounted investees ...........
• 1. Summary of the Group's operating results by quarters:

Interim Financial Statements of Icelandic Group Plc. 30 September 2007 ____________________________________________ 10 All amounts are in thousands of euro

Net finance costs

1. Net finance costs are specified as follows:

		2007		2006
		1.1.-30.9.		1.1.-30.9.
Interest income		894		971
Dividend income		187		5
Currency gain		0		4,342
Gain on sales of shares of subsidiary		1,096		0
Fair value changes on shares in other companies		13,805		0
Finance income, total		15,982		5,318
Interest expenses	(	29,124)	(	22,118)
Currency loss	(	2,725)		0
Fair value changes on shares in other companies		0	(	58)
Finance expenses, total	(	31,849)	(	22,176)
Net finance costs	(	15,867)	(	16,858)

Income tax

1. The main reason for fluctuations in effective income tax rates in the Income Statement is explained by different geographical composition of profit or loss before taxes in individual companies and periods.

Investments in other companies

1. The Group's investments in other companies is specified as follows:

	30/09/2007		31/12/2006
	Share	Carrying amount	Share	Carrying amount
Fishery Product International Ltd, Canada	15.8%	23,307	15.8%	10,868
Other companies (7/7)		385		194
Total investments in other companies		23,692		11,062

Own shares sold with put options		0	(	852)
Translation reserve	(	21,370)	(	12,085)
Statutory reserve		373		373
Reserves total	(	20,997)	(	12,564)

	Non-current	Current
Currency	borrowings	borrowings	Total
EUR	113,599	130,145	243,744
USD	12,942	112,455	125,397
GBP	63,848	37,234	101,082
DKK	13,520	13,136	26,656
JPY	3,736	18,749	22,485
CHF	750	10,949	11,699
CAD	0	9,242	9,242
NOK	0	2,778	2,778
SEK	0	1,465	1,465
CNY	0	720	720
ISK	56	0	56
Loans and borrowings, total	208,451	336,873	545,324
( Current maturities of non-current liabilities	13,929)	13,929	0
Loans and borrowings according to the balance sheet	194,522	350,802	545,324
31.12.2006
EUR	128,681	92,225	220,906
USD	11,375	127,230	138,605
GBP	92,424	36,256	128,680
DKK	13,913	11,089	25,002
JPY	3,930	17,945	21,875
CHF	802	11,140	11,942
CAD	0	8,567	8,567
NOK	0	3,370	3,370
ISK	1,697	84	1,781
SEK	0	1,484	1,484

Group companies

1. Subsidiaries numbered 34 at period-end and are all included in the consolidated finanical statements. They are:

	Share		Share
Beihai Beilian Foods Industry Co. Ltd.	51%	Icelandic Services ehf., Iceland	100%
Coldwater Seafood (UK) Ltd., UK	100%	Icelandic UK Ltd., UK	100%
Dalian Three Star Seafood Co. Ltd, China	98%	Icelandic USA Inc., USA	100%
Danberg ehf., Iceland	100%	IFP Trading Ltd., UK	100%
Ecomsa S.A., Spain	100%	Jeka Fish AS, Denmark	100%
Fiskval ehf., Iceland	100%	Marinus ehf., Iceland	100%
Gadus B.V., The Netherlands	100%	OTO L.L.C., USA	100%
Icelandic Asia Inc., S-Korea	100%	Pickenpack Assets GmbH, Ger	100%
Icelandic China Trading Co. Ltd., China	100%	Pickenpack Gelmer SAS, France	100%
Icelandic France S.A.S., France	100%	Pickenpack H&H GmbH, Ger	100%
Icelandic Group UK Ltd., UK	100%	Pickenpack H&H S.a.r.l., France	100%
Icelandic Holding Germany GmbH, Germany	100%	Seachill Ltd., UK	100%
Icelandic Iberica S.A., Spain	100%	Sirius ehf., Iceland	100%
Icelandic Japan K.K., Japan	100%	Sjóvík ehf. (Blue-Ice), Iceland	100%
Icelandic Norway AS, Norway	100%	Unifish ehf. a.v., Iceland	100%
Icelandic Northwest Inc., USA	85%	Verwaltungg. HFP GmbH, Ger	100%
Icelandic Scandinavia ApS, Denmark	100%	Westfalia-Strenz F. GmbH, Ger	100%

Financial Ratios

	30.9.2007	31.12.2006
Current ratio	0.92	0.99
Equity ratio	19.5%	19.4%
Return on equity (	1.1% ) (	5.7% )
Internal value	4.51	4.77
Change in price per share from the beginning of the period (	23.4% ) (	20.8% )
Price per share (ISK)	5.82	7.60
Market value of the company	196,347	233,054
	2007	2006
	1.1.-30.9	1.1.-30.9
EBITDA	26,971	34,960
EBITDA ratio	2.6%	3.1%

1. Financial ratios for the consolidated interim financial statements: