Marel hf. - Company Announcement

Marel offers to repurchase MARL 06 1 bonds

Following this announcement, Marel hf. will send a conditional offer to
repurchase bonds issued by the company and listed on the Nasdaq OMX Nordic
Exchange Iceland under the name MARL 06 1 (ISIN No: IS0000012177) (the “Bonds”)
at par on the date of repurchase. 

The Bonds were issued in Iceland in February 2006 with maturity on 8 February
2012. The repurchase of the Bonds is conditional upon Marel obtaining
satisfactory financing prior to settlement of the Offer. 

The offer to repurchase the Bonds is part of Marel's strategy to establish a
stable and cost efficient new financing structure, which will facilitate
further integration of the company's operations. Marel is currently in formal
discussions on financing with a limited number of international banks. 

It is Marel's aim to also fully repay MARL 09 1 bonds - issued in 2009 and
repayable at Marel's discretion until maturity in November 2011, in accordance
with their terms - subject to the availability of satisfactory financing. 

The two bond classes, MARL 06 1 and MARL 09 1, represent the only ISK exposure
remaining in the company's financing structure. At the end of Q3 2010, the
total value of MARL 06 1 bonds amounted to EUR 21.6 million, while MARL 09 1
totaled EUR 17.7 million. With the repurchase and repayment of its outstanding
bonds, the company seeks to further reduce currency risk with regard to ISK on
its balance sheet. 

The offer document, further describing the terms and conditions of the offer,
is attached to this announcement. 

Marel's advisors in the repurchase process are H.F. Securities. 


For further information, please contact:
Einar Palmi Sigmundsson, H.F. Securities, einarpalmi@hfverdbref.is, 
tel: (+354)585 1700 
Andri Gudmundsson, H.F. Securities, andri@hfverdbref.is, tel: (+354) 585 1700 
Jon Ingi Herbertsson, Investor relations, Marel, jon.herbertsson@marel.com,
tel: (+354) 563-8451

Attachments:

marel 06 1 offer document.pdf