Bakkafrost P/f — Earnings Release 2010

May 26, 2010

Q1 2010: A QUARTER REPRESENTING VESTLAX ADOPTION OF THE BAKKAFROST GROUP STRATEGY

The Bakkafrost Group's Operational EBIT* for Q1 2010

was DKK 50.4 million, and Operational EBIT/kg DKK

8.78 (NOK 9.56). Net profit for the period after

taxes was DKK 46.2 million. The biological

performance is still good and the market conditions

are very good. However the financial performance is

on short term negatively impacted by low, almost-

pure trout sales.

Commenting on the results, CEO Regin Jacobsen said:

"The Q1 2010 result represents, as previously

announced, a quarter in which we implemented the

change of strategy in the Farming West division, in

which we changed to pure salmon production. In the

transition period in 1H 2010, this has a negative

impact on the overall result, and on harvested

volumes. We expect, however, from second half of

2010, harvested volumes will start to increase again,

which should be reflected in the results following

the transition".

The operating revenues amounted to DKK 190.4 million

in Q1 2010 (DKK: 185.7 million in proforma 1Q 2009)

and represents an increase of 3%, although volumes

are reduced by 22%.

The Bakkafrost Group harvested a total of 5,744

tonnes gutted weight in Q1 2010 (7,318 tonnes gutted

weight in Q1 2009 merged). Of this, Bakkafrost

Farming North contributed 4,983 tonnes and West

(former Vestlax) contributed 761 tonnes, as it

switches from trout/salmon to pure salmon production.

Due to lower smolt releases in 2008 and the switch to

pure salmon production in Farming West, the harvested

volumes in 1H 2010 will be affected. The total

harvested quantities for 2010 and 2011, on average

for both years, is still estimated to be around

60,000 tonnes gutted weight.

Farming Segment:

Operational EBIT/kg for the farming segment was DKK

9.19 (NOK 10.00) per harvested kg, compared to DKK

4.50 (NOK 5.39) in Q1 2009. Farming North had a

calculated Operational EBIT of DKK 10.37 (NOK 11.29),

and Farming West had an Operational EBIT of DKK 1.44

(NOK 1.57). The unsatisfying result in Farming West

is a result of the trout production in the quarter,

which according to the company's strategy is being

phased out. The overall increase in the performance

of the Group reflects the increase in the salmon

price, the excellent biological situation and

improved performance in general. The profit after tax

for Q1 2010 was DKK 71.0 million (DKK 17.5 million in

proforma Q1 2009) for the farming segment.

Value Added Products (VAP) Segment:

Operational EBIT for the value added products (VAP),

segment, which is EBIT adjusted for provisions for

onerous contracts and listing costs, was DKK -0.65

(NOK -0.70) per kg gutted weight (DKK -0.33 (NOK -

0.40) per kg in Q1 2009). The continued increase in

the salmon price from 2009 and during Q1 2010

reflects the result from the value added segment. The

time lag between the movements in the fresh salmon

price and the contract price for value added products

leads to a significant negative result when spot

market prices increase and a positive result when

spot market prices decrease.

* Aligned for fair value adjustment of biomass,

onerous contracts provisions and costs related to the

listing on Oslo Børs.

Contacts:

Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001

(mobile)

Teitur Samuelsen, CFO of P/F Bakkafrost: +298 235111

(mobile)

Glyvrar, 26 May 2010

P/F Bakkafrost

Bakkavegur 9

PO Box 221

Fo-625 Glyvrar

Tel. +298 405000

Fax +298 405009

Bakkafrost@bakkafrost.com

www.bakkafrost.com

About Bakkafrost

Bakkafrost is the largest salmon farmer on the Faroe

Islands, with a production of 30,650 tonnes gutted

weight in 2009. The Group is fully integrated from

smolt to VAP and sales. The Group operates licenses

on 14 farming sites located in 13 different fjords,

and owns 44% of the total licenses on the Faroe

Islands. The Group has primary processing in Klaksvík

and Kollafjørð and secondary processing (VAP) in

Glyvrar. The headquarters is located in Glyvrar, and

the company has a total of 514 employees.

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