Marel Food Systems hf. - Company Announcement

Private placement completed

Marel Food Systems  hf. (Marel) private placement of new shares was
successfully completed last Friday. 

The new shares were sold at ISK 92 per share or at 4% discount considering
Marel‘s share price at the end of Friday. Marel‘s board of directors has
resolved to increase the Company's share capital by 29,800,000 shares. The
gross proceeds from the private placement amount to ISK 2,741,600,000 

The new shares represent 7.97% of Marel's total issued share capital prior to
the share increase. After the private placement the total share capital of
Marel will consist of 403,785,697 shares. 

The new shares will be paid for no later than on 10 December.The new shares are
expected to be admitted to trading on OMX no later than on Thursday 13 December
2007. 

The new shares were allocated to Icelandic pension funds  and other selected
investors. About 2/3 of the offering was sold to pension funds and 1/3 to other
investors. All of the major Icelandic pension funds will be among the largest
shareholders in Marel.
 
The private placement was managed by Landsbanki Islands hf.

When introducing the acquisition of Stork Food Systems on 29 November, it was
announced that Marel intends to raise EUR 147 million by issue of new shares,
to finance the acquisition of Stork Food Systems. With the private placement,
that closed last Friday, Marel raised EUR 30 million and at the same time
expanded its shareholders base. Marel is planning an offering of new shares to
pre-emptive rights holders totaling EUR 117 million next year. Landsbanki is
managing the offering and has underwritten the offering with the support of
Eyrir Invest and Grundtvig Invest. 

Hörður Arnarson, CEO of Marel, said „We are very pleased by the impressive
support shown by investors to the company and its future plans. The result
encourages both management and employees in the challenging projects that await
us.“