Strong results from Lerøy

In the second quarter of 2011, Lerøy Seafood Group had a turnover of NOK 2,397 million, an increase from NOK 2,176 million for the same period in 2010. The Board of Directors is very satisfied with the Group's evelopment and with the result achieved for the period, which is the highest second quarter result achieved in the history of the Group to date. The Group's operating profit before fair value adjustment of biomass was NOK 440.3 million in the second quarter of 2011, compared with NOK 367.8 million in the second quarter of the previous year. The strong increase in operating profit compared with the same period last year is as high as 19.7%. This is explained by volume growth and improved prices for the Group's main products, Atlantic salmon and salmon trout.

As a result of the Group's long-term industrial market strategy, the prices achieved for salmon and salmon trout will naturally deviate from the spot market prices. On the back of falling spot prices, realised contract prices have been higher than prevailing spot prices in the quarter under review. The Group's share of contracts was 48% in the second quarter of 2011 and will, based upon the current contract situation, be around 40% for 2011 in total. Committed contract prices for 2011 are higher than prevailing spot prices. This indicates that the Group can also expect to achieve higher realised prices than current spot prices in the time ahead.

As a result of considerably lower volumes, the associated company Norskott Havbruk (owner of the Scotland-based Scottish Sea Farms Ltd) achieved somewhat lower net earnings in the second quarter. Income from associated companies before fair value adjustment of biomass therefore declined from NOK 29.3 million in the second quarter of 2010 to NOK 17.7 million in the second quarter of 2011.

The Group's profit before tax and fair value adjustment of biomass in the second quarter of 2011 was NOK 439.3 million as against NOK 382.0 million in the second quarter of 2010.

Key figures:

* 33.2 thousand tons gutted weight of salmon and salmon trout harvested (Q2 2010: 27.6) * Turnover NOK 2,397 million (Q2 2010: 2,176) * Operating profit before fair value adjustment of biomass NOK 440.3 million (Q2 2010: 367.8) * EBIT/kg all inclusive NOK 13.3 (Q2 2010: 13.3) * Profit before tax and before fair value adjustment of biomass NOK 439.3million (Q2 2010: 382.0) * Spot prices for whole superior salmon are down by 8.1% compared with Q2 2010 * Paid dividend NOK/share 10.0, NOK 546 million (Q2 2010: NOK/share 7.0 / NOK375 million) * Net interest-bearing debt was NOK 1,528 million (NOK 1,321 million at30.06.2010) * Equity ratio 51.9%

FINANCIAL SUMMARY FOR FIRST HALF OF 2011

In the first half of 2011, Lerøy Seafood Group had a turnover of NOK 4,622million, an increase from NOK 4,049 million for the same period in 2010. TheGroup's operating profit before fair value adjustment of biomass was NOK 886.2million in the first half of 2011, compared with NOK 622.9 million in the first half of the previous year. The Group's operating margin before fair valueadjustment of biomass was 19.2% in the first half of 2011, compared with 15.4%in the first half of 2010.

In the first half of 2011, the Group generated an operating profit after fairvalue adjustment of biomass of NOK 391.6 million, against a profit of NOK 824.8million in the first half of 2010. Fair value adjustment of biomass inaccordance with IFRS is NOK -494.5 million in the first half of 2011, comparedwith NOK 201.9 million in the first half of 2010. The major negative IFRSadjustment in the first half of 2011 is due to a significantly lower spot pricefor salmon and salmon trout as of 30 June 2011 versus year-end 2010 prices,together with seasonally less biomass in sea. On the contrary, spot pricesincreased considerably in the first half of 2010. Income from associatedcompanies totalled NOK 36.5 million in the first half of 2011, compared with NOK70.0 million in the first half of 2010. Adjusted for fair value adjustment ofbiomass, the figures were NOK 44.6 million and NOK 55.6 million respectively.Decline is explained by lower volumes. Good results are expected in the secondhalf of the year on the back of Norskott Havbruk's market strategy and goodproductivity. The Group's net financial items in the first half of this yearamounted to NOK -35.5 million, compared with NOK -29.6 million in the first halfof 2010. The Group's profit before tax and before fair value adjustment ofbiomass was NOK 897.3 million in the first half, compared with a corresponding figure of NOK 648.9 million in the first half of 2010. Net earnings for the first half of 2011 corresponded to a profit before fair value adjustment of biomass of NOK 11.35 per share, as against a corresponding figure of NOK 8.90 in the first half of 2010. The number of outstanding shares is 54,577,368. The Group's annualised return on capital employed (ROCE) before fair value adjustment of biomass was 26.9% in the first half of 2011, as against 24.6% in the same period of the previous year. The Group's financial position is solid, with book equity of NOK 5,698 million, corresponding to an equity ratio of 51.9%. The Group's net interest-bearing debt at the end of the first half of 2011 was NOK 1,528 million as against NOK 1,321 million at the end of the first  half of 2010. In the period, a dividend of NOK 10.0 per share was paid out, i.e. NOK 546 million. In addition, the acquisition and consolidation of Sjøtroll Havbruk AS has increased net interest-bearing debt by NOK 689 million. The reduction of net interest-bearing debt by NOK 1.0 billion over the last four quarters, adjusted for dividend and acquisitions, is extremely satisfactory.

THE MARKET SITUATION/OUTLOOK

A higher growth in the global supply of Atlantic salmon in the next few years compared with the last two years is expected. Development in demand is good, and lower prices provide grounds for optimism as to continued positive development in demand. Good demand together with expectations for improved productivity in the Group's production, including improved biology, provides justification for the Board's positive attitude to the Group's development. The Board of Directors believes that the Group's strategic business development over the past few years, together with underlying productivity improvements and market-oriented structure, ensures a robust platform for earnings in the coming years. On the back of lower prices, the Board of Directors currently anticipates a poorer result for the Group in the second half of 2011 than was achieved in the second half of 2010.