Bakkafrost P/f — Earnings Release 2010

Aug 20, 2010

Bakkaftost Q2 2010 - Report and presentation

A STRONG QUARTER WITH HIGH MARGINS

Bakkafrost operational* EBIT for Q2 2010 was DKK 58.7

million compared to DKK 59.0 million in proforma Q2

2009. The margins in Q2 were on a record high level.

Bakkafrost Farming North made a profit of NOK 18.28

per kg gutted weight and Bakkafrost Farming West made

a profit of NOK 14.82 per kg gutted weight.

The operating revenues amounted to DKK 199.6 million

in Q2 2010 (DKK 243.2 million in proforma Q2 2009).

The reason for the decrease from 2009 to 2010 in Q2

is due to lower harvested volumes, but offset by

higher prices.

Bakkafrost harvested a total of 5,341 tonnes gutted

weight in Q2 2010 (7,406 tonnes gutted weight in

proforma Q2 2009). Of this, 2,739 tonnes gutted

weight (4,918 tonnes gutted weight Q2 2009) were

harvested in Bakkafrost Farming North, and 2,602

tonnes gutted weight (2,487 tonnes gutted weight Q2

2009) were harvested in Bakkafrost Farming West

(previously Vestlax).

The ratio of harvested fish sold on long-term

contracts in 2Q was 67%. Bakkafrost intends to sell

around 50% of its harvested fish as VAP products on

long-term contracts in the future; this is expected

to be reached as the total quantity of harvested fish

is expected to rise significantly in 2011.

Commenting on the results, CEO Regin Jacobsen said:

"The margin in the second quarter was significantly

improved compared with the first quarter due to good

market prices and better capacity utilisation in the

West division. With a high margin and a strong

expected volume growth we are optimistic for the

future. Bakkafrost expects to harvest from its

farming sites 24,000 tonnes gutted weight in 2010,

and we're on target for 60,000 tonnes gutted weight

for the years 2010 and 2011 in total."

* Aligned for fair value adjustment of biomass and

onerous contracts provisions.

Contacts:

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

(mobile)

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

(mobile)

Glyvrar, 20th August 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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