Marel hf. - Company Announcement

Marel-Issuance of Stock Options

The Board of Directors of Marel hf. resolved on December 2, 2014 to grant to
the members of Marel's Executive Team up to 2.5 million shares through stock
option agreements. 

The aim of the stock option agreements is to align the interests of senior
management and the company in the long run. This is in accordance with the
company's remuneration policy approved at Marel's Annual General Meeting in
March 2014. The stock options will be granted to all members of the Executive
Team, excluding the CEO. All will receive the same number of options, 225,000. 

Key terms and conditions of the agreements are as follows:

  -- The stock option agreements entitle purchase of shares at the base offering
     price of EUR 0,8613 per share[1]  that increases annually by 3% (hurdle
     rate). The exercise price shall be adjusted for any dividend payments made
     by the Company after the grant date.
  -- The options are allotted in three layers, so that the first 60% are
     exercisable in April 2018, the second 20% in 2019, and the remaining 20% in
     2020. Exercise periods are two per year in April and October.  Option
     holders can delay exercise of these options to 2021, when the agreements
     expire and all allotted but unexercised options are cancelled.
  -- Executive Team members are required to hold shares corresponding to
     approximately the net gain after tax from exercising the options, whilst
     employed by Marel.

The total number of shares granted by Marel hf. in stock option agreements with
employees, including this new stock option scheme, currently amounts to 16.9
million shares corresponding to approximately 2.3% of total share capital. The
company's cost of the new share option scheme is estimated to be EUR 346,000
over the next 5 years based on the option pricing model of Black-Scholes. 

Arni Sigurdsson Head of Strategy and Development now becomes a member of the
Executive Team. 

Details of the share options granted to Marel´s Executive Team:





Name:       Title:           New       Older granted     Shareholding in own    
                              Stock     and unexercised   name and/or fin.      
                              Option    options           related parties       
Anton de    MD IC Poultry     225,000           665,000                        0
 Weerd                                                                          
Arni        Head of           225,000                 0                        0
 Sigurdsso   Strategy                                                           
n                                                                               
David       Corp. Dir. HR     225,000            60,000                   50,000
 Freyr                                                          
 Oddsson                                                                        
David       MD IC Meat        225,000           260,000                        0
 Wilson                                                                         
Gerrit Den  MD Further        225,000           335,000                        0
 Bok         Processing                                                         
Linda       CFO               225,000           182,500                        0
 Jonsdotti                                                                      
r                                                                               
Paul van    Head of Global    225,000            60,000                        0
 Warmerdam   Supply Chain                                                       
Petur       Head of inter.    225,000           665,000                  159,430
 Gudjonsso   Sales and                                                          
n            service                                                            
Sigsteinn   COO               225,000           537,500                   25,997
 Gretarsso                                                                      
n                                                                               
Vidar       Head of Global    225,000           132,500                        0
 Erlingsso   innovation                                                         
n                                                                               

[1] The exercise price is determined by the closing rate of Marel shares at
NASDAQ OMX Iceland hf. on 2 December 2014, i.e. ISK 132,50 per share,
calculated with the Central Bank of Iceland EUR/ISK mid rate on that day;
153,83