Bakkavör Group’s Half Year and Q2 results 2008 have highlighted the following:

• Turnover £803.0 million in H1, up 11% and £425.7 million in Q2, up 14%

• Growth in like-for-like sales in underlying business 0.5% in H1 and 2.5% in Q2

• EBITDA £58.5 million in H1, down 23%, and £32.2 in Q2, down 21%, including restructuring costs of £3.1 million.

• EBITDA margin 7.3% in H1 and 7.6% in Q2 (7.7% in H1 and 8.3% in Q2, excluding restructuring costs)

• Operating profit (EBIT) £36.4 million in H1, down 36%, and £20.5 in Q2, down 35%

• Loss on the Group’s economic interest in 10.9% shareholding in Greencore Group PLC under CFD £46.2 million in H1, thereof £30.4 million in Q2

• Cash flow from operating activities £15.5 million in H1, down 75%, and £19.8 million, down 40%, in Q2

• Return on equity 7.3%, excluding loss on other financial assets, compared with 20.3% in H1 2007

• Earnings per share 0.4 pence in H1 excluding loss on other financial assets

• Strengthened global position with five acquisitions in the half year – in the United States, China, Italy and two in Hong Kong , in addition to the acquisition of the remaining 49% in Heli Food Fresh in the Czech Republic

• Acquisition of Fram Foods S.A, the French subsidiary of Fram Foods hf. in July

Ágúst Gudmundsson, Chief Executive Officer, comments: “Bakkavör Group’s half year results are in line with our expectations with sales performance starting to improve in Q2. The Group’s profitability continued to be affected by ongoing increases in raw material and utility costs, compounded by the strength of the euro against the pound, strategic business restructuring, the downturn in consumer confidence as well as unsettled summer weather in the UK.

“In Q1 we announced that we had taken an economic interest in Greencore Group. In the period, Greencore Group’s share price fell sharply which affected our profits significantly. However, we remain confident in this strategic holding, which reflects our commitment to the fresh prepared foods sector. We believe Greencore Group is well-placed to build on its strong market position and deliver long-term value for its shareholders.

“Looking ahead, the trading environment is expected to remain tough in the second half of the year and we will continue to focus on driving market share growth, recovering inflationary costs, improving operational efficiencies and restructuring parts of the business where necessary. This is expected to have a positive impact on sales and profit performance in 2009.

“Despite today’s challenging conditions, our commitment to our vision and strategy has never been stronger and we intend to strengthen our global position further. We have a unique global approach to developing our fresh prepared foods offer and the operational flexibility to react quickly to market conditions. While we see significant growth opportunities in the UK market, we will continue to expand in Continental Europe, Asia and North America to realise our goals and meet the growing consumer demand for fresh prepared foods globally.”