Profit up 181% for Lerøy Seafood Group

In the fourth quarter of 2009, Lerøy Seafood Group had a turnover of NOK 2,184 million, representing an increase from NOK 1,703 million from the same period in 2008. The Board of Directors is very satisfied with the Group's development and with the result achieved for the period which is, to date, by far the highest result achieved in the history of the Group. The Group's operating profit before fair value adjustment of biomass was NOK 311.4 million in the fourth quarter of 2009, compared with NOK 100.3 million in the fourth quarter of the previous year. The strong increase in the operating profit compared to the same period last year is as high as 210.5%. This is explained by higher volumes, lower production costs and higher prices for the Group's main products, Atlantic  salmon and salmon trout, and an extremely good development for the Sales and Distribution business segment. Due to the Group's long-term industrial market strategy, the prices achieved for salmon and salmon trout will naturally deviate from time to time from the spot prices. The negative deviation between the Group's realised contract prices and prevailing spot prices was record high throughout the second and third quarters of 2009. However, as expected, the deviation normalised in the fourth quarter. The Group's share of contracts has varied between 35% and 40% in the fourth quarter, at a similar level as for the year to date. At the beginning of 2010, the Group's share of contracts was somewhat lower than for the same point in time in 2009. Development in the Group's profit shows that the intensive efforts of the organisation are bearing fruit. Despite the fact that there are still considerable differences between the various units in the Production segment, it is very satisfying to be able to confirm a positive development. In 2009, the Group's production costs saw a decline - a trend that we believe will continue. The Group's goal is of course to reduce the considerable difference in costs that have existed between different regions in recent years. The organisation's patience and will, and its ability to remain motivated when the result of so much hard work is not expected to materialise until one to two years later, have all proved to be of decisive importance. As a result of improved production, including improved fish health, the Board of Directors anticipates that production costs will continue to fall in the future.

On the back of good market conditions, the affiliated company Norskott Havbruk (the Scotland-based Scottish Sea Farms Ltd.) saw a positive development in results in the fourth quarter. Accordingly, income from affiliated companies before fair value adjustment of biomass increased from NOK 2.0 million in the fourth quarter of 2008 to NOK 20.8 million in the fourth quarter of 2009.

In the fourth quarter of 2009, the Group's profit before tax and fair value adjustment of biomass was NOK 311.1 million as against NOK 60.1 million in the fourth quarter of 2008.

Below are a number of interesting key figures: * Harvested 35.0 thousand gutted weight tonnes of salmon and salmon trout (Q4 2008: 27.9) * Turnover NOK 2,184 million (Q4 2008: 1,703) * Operating profit before fair value adjustment of biomass NOK 311.4 million (Q4 2008: 100.3) * Profit before tax and before fair value adjustment of biomass NOK 311.1 million (Q4 2008: 60.1) * Export prices for whole Atlantic salmon are up 4.8% compared with Q4 2008 * Spot prices for whole superior salmon have seen an increase of 8.6% compared to Q4 2008 * Net interest-bearing debt was NOK 1,443 million (NOK 2,126 million at 30.12.08) * Equity ratio 51.8%

Summary 2009

In 2009, Lerøy Seafood Group had a turnover of NOK 7,474 million, representing an increase from NOK 6,057 million in 2008, i.e. 23.4%. The Group's produced volume shows an increase from 92,700 tons gutted weight in 2008 to 108,500 tons gutted weight in 2009. This growth amounts to 17.0% which is in line with the Group's communicated plans. The Group's operating profit before fair value adjustment of biomass was NOK 950.2 million in 2009, compared with NOK 337.2 million in 2008. This is an increase of as much as 181.8%.

The Group's operating margin before fair value adjustment of biomass was 12.7% in 2009, compared with a corresponding 5.6% for 2008. Both turnover as well as operating profit before fair value adjustment of biomass are, to date, by far the highest achieved in the history of the Group, and are a result of volume growth, lower feed costs, improved biological production and favourable prices for the Group's main products, Atlantic salmon and salmon trout. In addition, the Sales and Distribution business segment has shown an extremely positive development in 2009. The Board of Directors is full of praise for the employees' efforts, their understanding of the need for goal-oriented operational focus and for their willingness to adapt to changes throughout the entire organisation. The Board of Directors feels confident that the positive developments within the organisation will continue under Alf-Helge Aarskog as the new CEO.

The Group's profit before tax and before fair value adjustment of biomass was NOK 926.6 million in 2009, compared with a corresponding figure of NOK 201.0 million in 2008. Net earnings for 2009 correspond to a profit before fair value adjustment of biomass of NOK 12.80 per share, as against a corresponding figure of NOK 2.83 per share in 2008. The Board of Directors intends to propose to the Annual General Meeting that the dividend for 2009 be set at NOK 7.0 per share. The Group's financial position is solid, with book equity ratio of 51.8%. The Group's net interest-bearing debt at year-end 2009 was NOK 1,443 million versus NOK 2,126 million at 31.12.08.

Market outlook

Expectations in terms of future developments in the world economy, including development in demand for the Group's products, have become more positive throughout 2009 and considerably less characterised by fear than was the case at the beginning of 2009. Having said that, the Board of Directors believes that  there is still rather more uncertainty at the macro scale than can be considered normal. Development in demand for the Group's main products, Atlantic salmon and salmon trout, has been extremely positive in 2009. The positive development we have seen in 2009, together with an expected further drop in the global supply of Atlantic salmon in 2010, and limited anticipated growth over the next few years, gives cause for continued optimism. This, together with expectations for improved productivity in the Group's production, including improved biology, provides justification for the Board of Directors' positive attitude to the Group's development. The Board of Directors currently anticipates a better result for the Group in 2010 than was achieved in 2009.