Atorka Group hf. - Company Announcement

Atorka‘s financial restructuring

Due to the negative impact that the credit crunch has had on Atorka‘s
investments, the company has been working on financial restructuring in the
last few months. 

Unlike many other Icelandic investment companies, all of Atorka‘s investments
are in specialised manufacturing and service companies where most of them are
operating in international growth markets. 
Atorka's holding is generally 20-40%, ensuring it can strongly influence the
company strategy and management, both by close cooperation with the management
teams or by having own representatives on the Board of Directors. 

It is clear that the value of Atorka‘s listed and unlisted investments has been
going substantially down in the last few months, despite the fact that the
operation of these companies are well satisfactory compared to the market‘s
situation. 

Selling these investments now is not a good choice and a substantial increase
in value consists in working strategically with Atorka‘s investments for the
next few years. 

Upon creditors request, Atorka got KPMG London to evaluate Promens hf.,
Atorka‘s biggest single investment.  In the outcome of KPMG‘s evaluation and
the evaluation of the steering committee is solely looked at present market
situation which is affected of temporary decrease in turnover.  This outcome is
different form Atorka‘s management and board evaluation of the company‘s
investments in the long run. 

Due to above-mentioned mismatch in evaluation and to prepare comprehensive
financial restructuring of the company, the Board of Directors of Atorka has
decided to hire PriceWaterhouseCoopers in Denmark to work on total evaluation
of all of Atorka‘s investments and presumptive evolvement in the coming years. 
This work is estimated to take 3-4 weeks and will be finished before the end of
May. 
After this evaluation, Atorka will present its ideas of the company‘s future
which will aim at securing creditors and shareholders' position as much as
possible.