Alfesca hf. - Tender offer

Fairness Opinion By Saga Capital Investment Bank's Corporate Finance - In relation to Lur Berri Iceland ehf.'s takeover bid for Alfesca hf.

In relation to Lur Berri Iceland ehf.'s takeover bid to shareholders of
Alfesca, Saga Capital hf. is issuing its opinion of the bid and its terms on
behalf of Alfesca's Board, dated 21 July 2009. 
Saga Capital hf., an independent financial undertaking, was appointed by the
Board in accordance with Article 104 paragraph 7 of the Securities Act
no.107/2008. 

Please find attached Saga Capital's fairness opinion.

Summary of results

Investors are strongly encouraged to review the contents of Lur Berri Iceland
ehf.'s takeover bid as well as the contents of this memorandum as a whole, its
preconditions and reservations. 

Saga Capital's Corporate Finance believes that the offer price of ISK 4.5 per
share for shares in Alfesca hf. is fair for Alfesca hf.'s shareholders,
particularly when considering comparable companies and discounted cash flows.
The difficult conditions on the Icelandic financial market and recent takeover
bids in Iceland have also been taken into account. 

The offer price is the equivalent of the highest price paid by the consortium
for shares in Alfesca during the past six months. It is 32.4% higher than the
closing price on 28 May 2009, the day on which the proposed collaboration and
consortium for the control and operations of Alfesca hf. was announced.
Furthermore, the offer price is 25.3% higher than the average closing price
over the previous six months. 

The takeover bid states the intention to remove Alfesca hf.'s shares from
trading on the main market of the NASDAQ OMX Iceland, which may influence the
price of shares, their price growth, the ways in which they may be traded in
the future, as well as narrowing the group of investors entitled to invest in
the shares. 

Attachments:

fairness opinion 21 july 2009.pdf