Mowi ASA

Business and Financial Review • Dec 11, 2015

Marine Harvest ASA (OSE: MHG, NYSE: MHG): Strategic development

Marine Harvest ASA (OSE: MHG, NYSE: MHG): Strategic development

Marine Harvest to build a new greenfield feed factory in Scotland

Marine Harvest expanded into fish feed with our first factory opening at Bjugn

during 2014. The main reason was that feed is a significant part of the cost of

producing salmon. The factory at Bjugn has over the past 18 months proven to be

a success. Operational excellence and effective transportation and logistics

have been key contributors to the good results. Today the factory covers

approximately 80% of our Norwegian feed requirements.

We see, however, that third party European feed purchases remain significant,

within Scotland, Ireland and the Faroe Islands as salmon farming centers where

we today are 100% supplied by external feed companies. A second feed factory is

therefore in line with the strategy of being a fully integrated protein company.

After careful consideration, Scotland is viewed as the best alternative due to

its ability to fully serve our internal feed requirements in a cost effective

manner. The factory will be positioned to deliver feed to our operations in

Scotland, Ireland and the Faroe Islands, but this may change or develop over

time. In addition the range of feed types will be broadened to include starter

feed for freshwater and organic feed for our Irish operations.

Accordingly, the Board of Directors of Marine Harvest ASA has approved the

development of a new feed factory in Scotland. The specific location is yet to

be decided. The investment is estimated to approximately GBP 80 million and will

be phased over the years 2016-2018, with approximately 95% of the capital

expenditure falling within 2017-2018. The investment size reflects that the

product range will be broadened. The investment is expected to yield good

results, with a capital return target in the range of 15%. The factory is

expected to have a total capacity of around 170,000 tonnes of feed, with the

potential for further expansion. The investment is subject to acquiring land,

obtaining relevant permissions and consents. The construction phase is planned

to commence in 2017 and expected completion of the feed plant during the first

half of 2018. All existing external feed supply contracts in Scotland, Ireland

and the Faroe Island expire during the first half of 2018.

Existing management within Marine Harvest Fish Feed will provide support to the

build-up of the new operational management.

Marine Harvest to consider expanding business activity into service vessels

There are a substantial number of vessels operating in connection with Marine

Harvest today.  These vessels are for example work boats, well boats and feed

boats. The biological situation in Norway and our other Farming Regions, makes

well boats an integrated part of the value chain.  Vessel use in salmon farming

systems is increasing in significance due to increased smolt transportation, sea

lice, grading of fish, freshwater treatments and harvesting; as a consequence we

see significant scope for integration in this area of our operations.

Marine Harvest sees this as an opportunity to streamline production and cut

costs associated with the area. The profitability in the segment and the

expected return is good, and the timing is favorable for such a new business

activity. The Board of Directors has therefore requested the administration to

evaluate the business area "Marine Harvest Shipping".  The business area will be

supported by existing corporate group functions and will be developed gradually

through organic growth. Marine Harvest will now explore in detail the options

within this business segment and we will hire a COO within "Marine Harvest

Shipping" in 2016.

For further information, please contact:

Marine Harvest media: +47 48 18 99 00

About Marine Harvest Group

Marine Harvest Group is the world's leading seafood company and largest producer

of farmed salmon, with presence in 24 countries and a total of 11 700 employees

worldwide. The company is headquartered in Bergen, Norway, and is listed on the

Oslo Stock Exchange and New York Stock Exchange (NYSE). Please see

www.marineharvest.com for further information.

Forward looking statements

This release may be deemed to include forward-looking statements, such as

statements that relate to Marine Harvest's goals and strategies, salmon prices,

ability to increase or vary harvest volume, production capacity, trends in the

seafood industry, restructuring initiatives, exchange rate and interest rate

fluctuations, expected research and development expenditures, business prospects

and positioning with respect to market, demographic and pricing trends,

strategic initiatives, and the effects of any extraordinary events and various

other matters (including developments with respect to laws, regulations and

governmental policies regulating the industry and changes in accounting

policies, standards and interpretations) on Marine Harvest's business and

results. Forward-looking statements are typically identified by words or

phrases, such as "believe," "expect," "anticipate," "intend," "estimate," "may

increase," "may fluctuate," "plan," "goal," "target," "strategy," and similar

expressions or future or conditional verbs such as "may," "will," "should,"

"would," and "could." Forward-looking statements are Marine Harvest's current

estimates or expectations of future events or future results. Actual results

could differ materially from those indicated by these statements because the

realization of those results is subject to many risks and uncertainties. Marine

Harvest ASA's registration statement on Form 20-F filed in 2014, including the

section captioned "Risk Factors," contain additional information about factors

that could affect actual results, including: changes to the price of salmon

including the value of our biological assets; hedging risks; risks related to

fish feed; economic and market risks; environmental risks; operational risks;

risks related to escapes, disease and sea lice; product risks; risks related to

our acquisitions; financing risks; regulation risks including relating to food

safety, the aquaculture industry, processing, competition and anti-corruption;

trade restriction risks; litigation risks; tax and accounting risks; strategic

and competitive risks; and reputation risks. All forward-looking statements

included in this release are based on information available at the time of the

release, and Marine Harvest assumes no obligation to update any forward-looking

statement.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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