Merger of Icelandic Group Plc. and Sjovik/Blue Ice Group

RH Staff

This transaction is subject to due diligence by both parties. Once the merger is finalized, the seafood companies will come under the name of Icelandic Group. The objective of the merger is to combine the strengths of the two companies in the U.S. and Asia markets. The merger will result in various potentials for improved efficiency in the manufacture and sale of seafood products in these markets. The current shareholders of Sjovik/Blue Ice Group will hold 33% of the shares in Icelandic Group Plc. following the merger.

Icelandic Group Plc. is an Icelandic company that operates in the USA, Canada, UK, France, Germany, Spain and Japan. Its sales were estimated around $1.2Bil in 2005 before the merger. Sjovik/Blue Ice Group is one of the largest companies in Asia and is in the business of trading fish and fish products through its office in South Korea. Sjovik/Blue Ice Group’s sales last year amounted to approximately $325MM.

Icelandic® USA, Inc., headquartered in Norwalk, CT, and Samband of Iceland, headquartered in Newport News, VA, will be merged into a single operating company to better serve the U.S. seafood marketplace. The merger will provide substantial operating efficiencies for the combined companies that will benefit restaurant operators, retailers and consumers in the U.S. The merger will create a strong manufacturing and sales company in the United States with combined sales equaling slightly less than $500MM, making it a leading company in the U.S. seafood marketplace.

The sales of Icelandic Group’s subsidiary in the United States, Icelandic® USA, were $321MM in 2004. The company’s operations are twofold: 1) Icelandic® USA, Inc. specializes in the reselling of premium fillets and the manufacture of value-added frozen products manufactured in its plant in Cambridge, MD; 2) Ocean to Ocean Seafood LLC (OTO), acquired in 2003, specializes in the import and sales of shrimp and other shellfish products.

The sales of Samband of Iceland were $143MM in 2004. Their seafood plant is one of the most modern in the United States. The plant is efficient and well situated in regards to distribution and a favorable manufacturing environment.

Both Icelandic® USA, Inc. and Samband of Iceland will join forces in the coming weeks to work on a consolidation plan that will take effect after the due diligence process. The agreement is made subject to the conclusions of an expert report regarding the merger. It is understood that the merger of the companies will be formally confirmed in mid-May. The merger and its impact on the operation of the merged companies will be presented in greater detail at a later date.

For further information, please contact:

Magnus Gustafsson, President and CEO of Icelandic® USA, Inc. 203-229-2201