Bakkafrost P/f — Earnings Release 2010

Nov 9, 2010

Q3 2010: ANOTHER QUARTER WITH STRONG MARGINS

(Glyvrar 9 November 2010) Bakkafrost Group's

operational EBIT for Q3 2010 was DKK 47.3 million

(DKK 50.9 million in proforma Q3 2009). Operational*

EBIT for the first 9 months of 2010 was DKK 156.4

million (DKK 142.1 million in proforma for the first

9 months of 2009).

The operational EBIT margin increased from 22.3% in

proforma Q3 2009 to 26.7% in Q3 2010. For the 9 month

period the margin increased from 21.6% to 27.5%

The total harvested volume in Q3 2010 was 4,048

tonnes gutted weight (6,815 tonnes gutted weight in

proforma Q3 2009 and 5,341 tonnes gutted weight in Q2

2010). For the first 9 months of 2010, the harvested

volume was 15,133 tonnes gutted weight (21,715 tonnes

gutted weight for the first 9 months of 2009

proforma).

Commenting on the results, CEO Regin Jacobsen said:

"We are satisfied with the result taking into account

the low harvested volumes and thus low capacity

utilisation. Going forward, the harvest will be at a

significantly higher level, which gives the company a

platform for better biological-, operational- and

market planning".

The Board of Directors has decided to propose to the

Annual General Meeting that if no M&As have taken

place before the next Annual General Meeting, a high

share of the earnings per share (EPS) from 2010 will

be paid out as dividend. It is the Board of Directors

view that 30-50% of EPS shall be paid out as dividend

when the Group's equity ratio is above 60%. At the

end of 3Q 2010, the equity ratio was 73%.

Bakkafrost's smolt release was guided to be approx 7

million pieces in 2010. This is now estimated to be

7.9 million pieces.

Operational* EBIT/kg in Q3 2010 was DKK 11.70 (NOK

12.49) (DKK 7.48 (NOK 8.77) in proforma Q3 2009).

Operational* EBIT/kg for the first 9 months of 2010

was DKK 10.34 (NOK 11.09) (DKK 6.54 (NOK 7.76) in the

proforma figures for the first 9 months of 2009).

Bakkafrost Farming North (former Bakkafrost) had a

calculated operational EBIT/kg of DKK 13.31 (NOK

14.22) in Q3 2010, and Bakkafrost Farming West

(former Vestlax) had a calculated operational EBIT/kg

of DKK 19.49 (NOK 20.81) in Q3 2010.

For the first 9 months of 2010, Bakkafrost Farming

North (former Bakkafrost) had a calculated

operational EBIT/kg of DKK 12.98 (NOK 13.87), and

Bakkafrost Farming West (former Vestlax) had an

operational EBIT/kg of DKK 13.10 (NOK 13.99).

The ratio of harvested fish sold on long-term

contracts in 3Q was 62%. 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.

Bakkafrost expects to harvest from its farming sites

23,000 tonnes gutted weight in 2010 and 35,000 tonnes

gutted weight in 2011. In 3Q 2010, Bakkafrost

accounted for 44% of the 9,200 tonnes gutted weight

of the total exported volume of farmed fish from the

Faroe Islands.

The Group's net interest-bearing debt at the end of

Q3 2010 was DKK 80.4 million (DKK 251 million in

proforma at year-end 2009 and DKK 65.1 million at the

end of Q2 2010).

The planned operational changes post-merger of

Vestlax into Bakkafrost are on track.

The company has a strong balance sheet with high

equity ratio and high available credit facilities

For further information, please contact:

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

(mobile)

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

(mobile)

Glyvrar, 9 November 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.

The Group has primary processing in Klaksvík and

Kollafjørð and secondary processing (VAP) in Glyvrar.

The headquarter is located in Glyvrar, and the

company has a total of 400 employees.

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