Exista hf. - Company Announcement

Sale of shares in Bakkavör Group

The Board of Exista has decided to sell all shares in
Bakkavör Group hf, a total of 855,151,478 shares representing 39.629% of the
total share capital, to ELL 182 ehf. The price is ISK 9.79 per share which is
the last closing price of Bakkavör Group 8 October. The transaction is subject
to creditors' approval. Following the transaction, Exista and its affiliates do
not own any shares in Bakkavör Group. 

The owners of ELL 182 ehf. are the founders and directors of Bakkavör Group,
Lýdur Gudmundsson and Ágúst Gudmundsson. The sale contributes to ensure
stability in the Group's future operations and ownership.