Marel Food Systems hf. - Company Announcement

Side activity sold

Marel has reached an agreement on the sale of its Scanvaegt Norfo sawing system
division in Bornholm Denmark to Nienstedt G.m.b.H.  The transaction price is at
the request of  Nienstedt G.m.b.H. kept confidential. 
While the sale will have an insignificant effect on the turnover and profit of
Marel Food Systems in 2008, it is nevertheless important in terms of sharpening
the focus  on the company's core activities. 

Under the agreement, Nienstedt G.m.b.H will be offering customer support to the
Norfo sawing system equipment already in service. 
The sales agreement only concerns the Norfo sawing system activities of Marel
in Bornholm.   All other cutting and portioning activities of Marel ehf. (in
Bornholm, Aarhus and Gardabaer) will remain unaffected by the agreement. "Our main focus now, particularly with the merger of the Marel and Scanvaegt
operations, is on the innovation and profitability of our core business of
Marel ehf.  The sawing systems simply does not fit into that strategy.  The
sale is an important step for us and we will now be able to concentrate even
further on our core activities," says Sigsteinn Gretarsson, Managing Director
of Marel ehf. 
For further information please contact Sigsteinn Gretarsson, Managing Director
of Marel ehf.