AKVA Group — Earnings Release 2010

Oct 28, 2010

AKVA group ASA 3Q financial reporting

Highlights

-      Operating revenues in 3Q were 212.3 MNOK versus 139.8 MNOK last year.

Year to date operating revenues were 546.6 MNOK versus 456.5 MNOK last year.

-      Operating profit was 10.2 MNOK in 3Q compared to 7.4 MNOK in 3Q last

year. Last year's figures were positively affected by one-off items amounting to

net 6.7 MNOK.

-      Implementation of measures to reduce costs and improve earnings

continues.

-      The order backlog at the end of 3Q was 270 MNOK versus 203 MNOK at the

end of 3Q last year.

In the comments below on the financial accounts, the 2009 figures are presented

in parentheses following the 2010 stated values when included. From the change

in the group structure that was implemented in the second half last year with a

flatter structure, the group does no longer operate according to the split

between the two former operational segments OPTECH and INTECH.

Operations and profit

Operating revenues in 3Q were 212.3 MNOK (139.8 MNOK) with an EBITA of 10.2 MNOK

(7.4 MNOK). Last year's figures were positively affected by one-off items

amounting to net 6.7 MNOK related to profit from the sale of Surefish 11.7 MNOK

and restructuring provisions of 5.0 MNOK. Margins on projects were negatively

affected by higher costs on barge, cage projects and product mix. The group

continues to work on reducing the cost base as well as improving precision and

quality in the deliveries. Focus will be to strengthen AKVA group's position in

the established markets and efforts into Asia will be limited towards more

selected projects rather than having presence in many markets.

The depreciations in 3Q were 8.1 MNOK (8.0) resulting in an EBIT of 2.1 MNOK (-

0.6). Net financial items were -3.7 MNOK (-3.1). The increase is related to

currency loss. Profit before tax in 3Q was -1.7 MNOK (-3.7) and net loss -1.5

MNOK (0.4) after allowing for taxes of -0.1 MNOK.

YTD operating revenues were 546.6 MNOK (456.5) with and EBITDA of -1.2 MNOK

(4.5). Depreciations and amortizations amounted to 23.2 MNOK (23.7) resulting in

an EBIT of -24.4 MNOK (-19.2). YTD profit before tax was -31.7 MNOK (-26.7)

after allowing for net financial items of -7.3 MNOK (-7.5). Net profit for the

nine months period was -23.1 MNOK (-17.6).

Balance sheet and cash flow

Working capital in the group balance sheet, defined as non-interest bearing

current assets less non-interest bearing current liabilities was 114.6 MNOK down

from 120.0 MNOK from the beginning of the year and down from 127.5 MNOK from end

of 3Q last year. Focus is maintained on containing the working capital.

Net interest-bearing debt amounted to 156.4 MNOK at the end of 3Q versus 141.9

MNOK at the beginning of the year. Gross interest bearing debt amounted to

206.5 MNOK versus 200.0 MNOK at the beginning of the year. Cash and unused

credit facilities amounted to 65.0 MNOK. Total assets and total equity amounted

to 669.1 MNOK and 233.0 MNOK respectively, resulting in an equity ratio of

34.8%.

Investments in the first nine months amounted to 14.2 MNOK whereof 5.3 MNOK is

capitalized R&D expenses in accordance with IFRS.

A waiver extending through 4Q 2010 relating to the financial covenants of the

major credit facilities and loans was agreed with the company's main bank in 2Q.

Shareholder issues

Earnings per share for 3Q 2010 were -0.09 NOK (0.02). The calculation is based

on 17.222.869 shares average.

In August Mr Knut Molaug stepped down from his position as CEO for AKVA group

ASA. There is an ongoing search for a new CEO, meanwhile the CFO Morten Nærland

is the acting CEO of the group.

Market and future outlook

The order inflow during 3Q was marked by the holiday season in Norway and the UK

although with a recovery seen towards the end of the quarter. The Norwegian

salmon farming industry is still enjoying sound salmon prices but to balance the

equation there are also challenges as to sea lice situation, disease issues and

uncertainty related to the general regulatory framework for the industry. The

latter might well contain investments.

During 3Q the incipient recovery of the Chilean market became more evident

showing a sound order inflow, also going into 4Q. The other markets also seem to

be developing fairly well with a scent of a positive sentiment.

In October AKVA group signed a contract with National Prawn Company in the

Kingdom of Saudi Arabia for delivery of a pre-grow-out system for production of

Yellowtail Kingfish for a value of 21 MNOK. The contract was part of Letter of

Intent that was signed in March 2009 and will be delivered during the first half

of 2011.

The order backlog was at the end of 3Q 270 MNOK versus 203 MNOK at the end of

3Q last year. Several projects to improve gross margin and reduce the fixed cost

base are ongoing, but the full effect will come through in the first half of

Dated: 27(th) October 2010

AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Morten Nærland       Acting Chief Executive Officer & Chief Financial Officer

Phone:                             +47 51 77 85 00

Mobile:                   +47 91 80 40 32

E-mail:                  mnaerland@akvagroup.com

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AKVA group is the leading provider of technology to the global fish farming

industry and the only with global distribution. The products consist of software

systems, operational equipment and sensor systems, feed systems, cage systems,

net cleaning systems, light systems and recirculation aquaculture systems.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1456252]