Marel Food Systems hf. - Company Announcement

Marel announces sale of operations of Carnitech A/S in Stovring

Marel has reached an agreement with the American Industrial Acquisition
Corporation (AIAC) on the sale of the operations of Carnitech A/S in Stovring,
Denmark, a non-core operating unit. AIAC is a privately held industrial group
with a serious, long-term mission to build strong companies. The AIAC
subsidiary acquiring the assets and liabilities will be renamed Carnitech. 

Excluded from the agreement are Carnitech's former salmon and freezing
divisions, and its operations in the United States, which are now operated
under the Marel name and management. Marel will phase out the use of the
Carnitech brand name within the coming year. 

The sale represents an important step in Marel's plan to divest of non-core
operating units and to focus exclusively on the profitability and organic
growth of its core business, which centres on the fish, meat, poultry and
further processing segments of the food processing industry. 

The buyer acquires the operational assets and liabilities of the Carnitech
operations in Stovring. The real estate assets of the company in Stovring are
not included in the agreement. The parties have entered into a long-term rental
agreement with an option for the buyer to acquire the premises. The assets sold
incurred a loss of EUR 8 mln before tax, which was included in the 2009
accounts, mainly due to the write off of goodwill and revalued assets. The
agreement between the parties was closed today. 


Theo Hoen, CEO of Marel:

“The sale of Carnitech in Stovring, the last remaining major non-core operating
unit, is a very positive step forward for Marel. We can now turn our undivided
attention to building on our position as market leader in our core business.
Following a difficult year in 2009, we feel confident that Carnitech can build
a new future under this new ownership.” 

Carnitech's business focuses primarily on the development, manufacturing and
sale of equipment for the food processing industry but its products fall
outside the scope of Marel's core business. The product range includes lifting
and discharging equipment, customized handling and storage solutions and thin
plate production equipment. In 2009, the unit accounted for 3.7% of Marel's
revenues, with a turnover of EUR 20 mln. 


About Marel 
Marel is the leading global provider of advanced equipment, systems and
services to the fish, meat and poultry industries. With offices and
subsidiaries in over 30 countries and a global network of 60 agents and
distributors, we work side-by-side with our customers to extend the boundaries
of food processing performance. Marel: ONE STOP for all your processing needs.