Marel Food Systems hf. - Company Announcement

Private placement of shares in Marel Food Systems hf. successfully concluded

A private placement of new shares in Marel Food Systems hf. was successfully
completed on Thursday, October 16th 2008. Subscriptions for shares amounted to
ISK 20,074,615 nominal value at 70 ISK per share, equivalent to ISK
1,405,223,050 (approximately € 10 million), which equals to 3.58% of total
equity. The Board of Directors of Marel Food Systems decided to
accept all subscriptions for shares, the vast majority of which were from
pension 
funds. The purpose of the share offering was to further strengthen the
Company's finances and to increase free float of its shares. 

Marel Food Systems hf. is a multinational company and a leading global provider
of advanced equipment and systems for the food processing industry. Projected
pro forma revenues in 2008 amount to approximately €650 million from the
Company's core business, with an EBIT of 9%. The Company is financially sound
with a strong equity ratio and an average maturity of debt of five years.
Following a period of rapid external growth, the Company will now focus on
internal growth and increased profitability. 

Hörður Arnarson, President and CEO of Marel Food Systems, expressed
satisfaction with the positive response to the private placement from qualified
investors. „Marel Food Systems hf. is appreciative of the support that
investors have shown the Company in this private placement, as well as in
previous share offerings. It is particularly welcome at a time when conditions
in the financial markets are unusual, to say the least.”