Eignarhaldsfélagið Farice ehf. - Financial Statement Release

Release of Financial Statements for year 2009

April 30 - 2010

Press Release from Eignarhaldsfelagid Farice ehf

Release of Financial Statements for year 2009

The Consolidated Financial Statements of Eignarhaldsfelagid Farice ehf covers
the operation of the FARICE and DANICE submarine cables and associated systems,
and the new investments of the company.  The company‘s operating currency is
the EURO (EUR) and has been since the company‘s foundation. 

The company‘s revenues are from sale of bandwidth capacity through its own
submarine cable systems between Iceland and neighboring countries, and resale
of bandwidth capacity through the Greenland Connect submarine cable system. 
The customers are domestic and foreign telecommunication companies. 

In 2009 the company‘s income amounted to EUR 5.8 million, compared to EUR 8.6
million in 2008.  This lower income compared to the year 2008 is due to general
market difficulties. 

EBITDA-margin shows a positive result of EUR 1.3 million.  The loss for the
year amounted to EUR 14.6 million, primarily explained by high financial costs
and depreciation. Total equity amounted to EUR 11.8 million at year-end 2009. 

The new DANICE submarine cable system between Iceland and Denmark was
operational in 2009, now being used together with the FARICE submarine cable
system as one of the two main routes between Iceland and other European
countries. 

The company‘s previous plans assumed a considerable income from data center
facilities in Iceland; these plans were not realized in the year.  In the
current plans revenues from this source are assumed to begin in 2010 and
increase in the coming years. 

In November 2009 the company‘s board approved to initiate a restructuring
process aimed at the long term financing of the company, by renegotiating with
the company‘s main creditors.  With the participation of the company‘s major
creditors this process is expected to be finished in the second quarter of
2010. 


For further information; see the 2009 Consolidated Financial Statements,
approved by the company‘s board today. 

Contact:	Gudmundur Gunnarsson, CEO, tel. +354 893 4840

Attachments:

e-farice consolidated 311209.pdf