SalMar ASA — Earnings Release 2010

Oct 29, 2010

SalMar Q3 2010 - Report and presentation

STRONGEST QUARTER EVER FOR SALMAR

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

biomass of NOK 300.7 million in the third quarter 2010. This is 34 per cent

higher than in the same quarter in 2009. Both the Central Norway and Northern

Norway segments posted record results for profit per kg gutted weight and

overall operating profit. In its first quarter as part of the SalMar Group,

Rauma Gruppen AS also performed extremely well. The results are due to a

combination of high salmon prices, good operational efficiency and continued

satisfactory biological development in the biomass.

The SalMar Group generated gross operating revenues of NOK 1,002.3 million in

the third quarter 2010, compared with NOK 688.3 million in the corresponding

quarter in 2009. The Group made an operating profit before fair value adjustment

of the biomass of NOK 300.7 million, compared with NOK 225.1 million in the

corresponding quarter in 2009. For SalMar Central Norway this resulted in an

operating profit of NOK 16.38 per kg gutted weight, while SalMar Northern Norway

made an operating profit of NOK 17.05 per kg gutted weight.

SalMar owns 75.5 per cent of Rauma Gruppen AS, which operates eight fish farming

licences in Romsdalsfjorden in Møre & Romsdal County. The business generated

operating revenues of NOK 160.0 million during the quarter, and made an

operating profit before fair value adjustment of the biomass of NOK 48,9

million. The margin per kg gutted weight in the quarter came to NOK 17.16.

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

mainland Scotland, the Orkneys and Shetland. The business generated operating

revenues of NOK 238.7 million in the third quarter 2010, and made an operating

profit before fair value adjustment of the biomass of NOK 63.0 million. The

margin per kg gutted weight in the quarter came to NOK 10.19.

"The positive trend which the SalMar Group has experienced in 2010 has continued

in the third quarter," said CEO Leif Inge Nordhammer. "We are pleased to be

announcing record results from both SalMar Central Norway and SalMar Northern

Norway. Rauma Gruppen's performance was also very satisfactory. We will continue

our efforts to achieve operational improvements in all areas. We will be

focusing particularly on further harmonising our operations in central Norway to

extract the synergies available. The price of salmon, which was 20 per cent

higher than in the same quarter last year, has contributed to our strong

results, along with our unwavering focus on fish health and welfare, and

operational efficiency."

Including Rauma Gruppen AS and the Group's 50 per cent share of Norskott Havbruk

AS, SalMar harvested some 22,700 tonnes gutted weight in the third quarter. This

breaks down as follows: 11,700 tonnes from SalMar Central Norway, 5,100 tonnes

from SalMar Northern Norway, 2,800 tonnes from Rauma Gruppen, 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.

The relatively low sea temperatures in Norway in 2010 have not provided optimal

feeding and growth conditions. This has led to SalMar reducing its 2010 guiding

for SalMar Central Norway from 56,000 tonnes to 53,000 tonnes, and for SalMar

Northern Norway from 17,000 tonnes to 16,000 tonnes. The harvesting forecast for

Norskott Havbruk remains unchanged at 24,000 tonnes, with SalMar's 50 per cent

share coming to 12,000 tonnes. Rauma Gruppen expects to harvest 8,000 tonnes in

SalMar considers its outlook to be very good. Despite record salmon prices, the

company is experiencing strong demand. SalMar believes this strong demand,

combined with developments in the global production of salmon, give grounds for

strong salmon prices in the time ahead. At the same time the aquaculture

industry in Norway has a 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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