SalMar ASA — Earnings Release 2010

Aug 17, 2010

SalMar Q2 2010 - Report and presentation

SALMAR GROUP ACHIEVES RECORD MARGINS IN ALL SEGMENTS

The SalMar Group posted an operating profit before fair value adjustment of the

biomass of NOK 173.4 million in the second quarter 2010, 70 per cent up on the

same quarter in 2009. All the Group's segments (Central Norway, Northern Norway

and Scotland) achieved record high margins during the quarter. The Group's

performance can be ascribed to a combination of high salmon prices and continued

satisfactory biological developments. Relatively low sea temperatures throughout

2010 have affected growth rates and put some pressure on production costs.

The SalMar Group generated gross operating revenues of NOK 659.5 million in the

second quarter 2010, compared with NOK 456.3 million in the same quarter in

2009. The Group made an operating profit before fair value adjustment of the

biomass of NOK 173.4 million, compared with NOK 102.2 million in the

corresponding quarter in 2009. This resulted in an operating profit per kg

gutted weight of NOK 15.62 for SalMar Central Norway and NOK 16.05 for SalMar

Northern Norway.

SalMar owns 50 per cent of Norskott Havbruk AS, which operates fish farming

facilities in mainland Scotland, the Orkneys and Shetland. The business

generated gross operating revenues of NOK 247.6 million in the second quarter

2010, and made an operating profit before fair value adjustment of the biomass

of  NOK 79.7 million, compared with NOK 42.4 million in the corresponding

quarter in 2009. The margin per kg gutted weight in the quarter came to NOK

12.69. This is a record result, both with respect to overall operating profit

for a quarter and operating profit per kg gutted weight.

Commenting on the results, CEO Leif Inge Nordhammer said that in terms of

profits the second quarter 2010 was yet another record quarter for the SalMar

Group. "Every segment delivered the highest operating profit per kg gutted

weight they have ever achieved. The record high price of salmon during the

quarter is a strong part of the reason for the record margins, but our

uncompromising focus on the biomass and operational efficiency is a precondition

for achieving the results that we have delivered. It is particularly pleasing to

see that SalMar Northern Norway has delivered another strong quarter, and has

gained a biological platform which bodes very well for the second half of the

year. The relatively low sea temperatures we have seen in Norway so far this

year have not given us optimal feeding and growth conditions, and this has had a

negative effect on production costs.

"The salmon market is still very strong, and so far in 2010 both salmon prices

and export volumes have been at record levels for the time of year. The global

supply of salmon is expected to fall by around 5 per cent in 2010. Combined with

a continued strong demand in our most important markets, this should result in

salmon prices stabilising at a relatively high level for a long time to come."

Including its 50 per cent shareholding in Norskott Havbruk AS, the SalMar Group

harvested some 14,200 tonnes gutted weight, with 9,100 tonnes being harvested in

central Norway, 2,000 tonnes in northern Norway and 3,100 tonnes in

Scotland/Orkneys/Shetland.

SalMar's key figure for profit performance under IFRS is EBIT (operating profit)

before fair value adjustment of the biomass. Adjustment of the fair value of the

biomass results from the requirement to value biological assets (the biomass) at

fair value instead of cost price. SalMar reports EBIT before fair value

adjustment of the biomass in order to show the underlying performance of its

operations during the period.

Despite the low sea temperatures in parts of Norway this year, SalMar is

maintaining its overall harvesting estimate for 2010 at around 85,000 tonnes

gutted weight, distributed thus: approx. 56,000 tonnes for SalMar Central Norway

and 17,000 tonnes for SalMar Northern Norway, while Norskott Havbruk aims to

harvest approx. 24,000 tonnes, of which SalMar's share is 50 per cent, ie

12,000 tonnes.

The Group's strategy for dealing with salmon lice continues has been successful.

The measures implemented, including the use of wrasse, have given satisfactory

results.

SalMar considers the immediate outlook to be very bright. Despite historically

high salmon prices, the company is experiencing strong demand. Combined with the

expected fall in exports of Atlantic salmon from Chile, this will provide - in

SalMar's view - grounds for good salmon prices for a long time to come. At the

same time, the Norwegian fish farming industry has considerable growth

potential.

For further information, please contact:

Leif Inge Nordhammer, CEO, +47 916 85 250

Roar Husby CFO, +47 982 06 974

See also the company's website:www.salmar.no

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

(Norwegian Securities Trading Act)

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