Eyrir Invest ehf. - Financial Statement Release

Eyrir Invest 2009 Results

Sound financials and good prospects for core investments

• Equity at year end 2009 is EUR 153.5 million and the equity ratio is 38%.

• Eyrir Invest has since mid-year 2008 used the equity method in accounting for
  its principal long-term holdings in Marel and Össur.  As of January 1st 2009,
  Eyrir Invest‘s functional currency is the Euro.
• Reported loss in 2009 is EUR 24 million, which is mainly related to write
  down of book value of shares in Marel and Össur.  The write down is due to
  equity issues in both companies at lower price than book value in 2009.  It is
  Eyrir Invest‘s opinion that these equity issues will strengthen the companies'
  positions and increase their liquidity and trading of their shares. 

• In 2009, all short-term debts were extended or repaid.  Cash and bank
  deposits amounted to EUR 27.5 million at year end. The cash position increased
  further following the sale of shares in Össur in March 2010, reducing Eyrir´s
  shareholding from 19% to slightly above 15% of total shares. 

• In 2009, Eyrir Invests core holdings - Marel, Össur and Stork - strengthened
  their market position considerably and their operations returned an excellent
  cash flow without compromising research and development efforts. 

• The outlook for Marel, Össur and Stork is good.  The companies are all highly
  cash generating, have sound financial positions and have strengthened further
  their competitive position in recent years.  Their financing is in accordance
  with international practices with net debt around 2-4x EBITDA. 

• By using current market price instead of the equity method for Marel and
  Össur, the equity ratio would today be calculated at 35%. 

Eyrir Invests shareholder return has been good since foundation in mid-year
2000.  Internal value per share is today 14.4 eurocents compared with 1.4
eurocents at foundation, 10 years ago.  For the same period, the MSCI world
index has declined by 6% annually in Euros, or by 44% compounded. 


Arni Oddur Thordarson, CEO:

“I am extremely proud of the results that the Eyrir team has achieved in recent
years.  The management and employees of our core holdings have shown strength
and flexibility in turbulent times.  The financial crisis that begin in 2008
led to a worldwide economic downturn of a higher magnitude than we have seen in
decades.  However, it seems that the bottom is now behind us with global
industrial production showing clear signs of recovery, underpinned by rapid
global recovery of equities and reopening of credit markets. 

Marel and Össur are in a unique position to create value for customers and
shareholders.  After strategic acquisitions in recent years, the landscape in
their respective industries has been transformed.  They are highly cash
generative without sacrificing R&D efforts or penetration into new emerging
markets.  Their competitive position has strengthened considerably. 
Eyrir is in a strong position at this interesting point in time.  We are
grateful for the trust we and our core holdings receive from financial
institutions and investors.” 

Eyrir Invest‘s core holdings, representing over 90% of assets, are in the
leading industrial companies Marel, Össur, Stork Technical Services and Fokker
Aerospace.  Eyrir Invest has been a shareholder in Marel and Össur since 2004
and in Stork since 2006.  Stork is currently moving toward a full separation of
Stork Technical Services and Fokker Aerospace in due course. 

In addition to its core investments, Eyrir Invest has investments in various
start-up companies and supports their further growth.  The largest investment
is in Calidris where Eyrir is a principle shareholder in good co-operation with
the founders.  Calidris develops and markets software to use in revenue
integrity solution for airline companies around the world.  Calidris is well
positioned and its prospects are good. 

Eyrir Invest is the largest shareholder in Marel with 32% of total shares and
the second largest shareholder in Össur with 19% of total shares at year end
2009.  In March 2010, Eyrir Invest sold a 4% share in Össur and now holds 15.1%
of total shares.  Since mid-year 2008, Eyrir Invest uses the equity method in
accounting for these assets.  Eyrir Invest will continue to use the equity
method in accounting for its share in Össur as Eyrir is still a long-term
investor in the company and the second largest shareholder. As such, its
influence on the company's strategy remains unchanged.  Össur's shares now
trade at 25% above book value. 

Since Össur's shares were dual-listed on Nasdaq OMX Copenhagen in September
2009, its share price has increased by 60%.  The book value of Marel is higher
than its market price in Eyrir Invest‘s accounts.  Marel is still solely
registered on the Icelandic Stock Exchange; however, Marel's management has
reported the intention to dual list the shares in due course.  Valuation and
impairment tests on Eyrir Invest‘s share in Marel fully support the book value
of Marel. 

If the holdings in Marel and Össur were booked at market prices, the equity
ratio of Eyrir Invest would be calculated as 35% instead of 38% when using the
equity method.  Marel and Össur are today the largest companies listed on the
Nasdaq OMX in Iceland and, furthermore, among the largest export companies in
Iceland. 

Eyrir Invests Operational Results in 2009
Eyrir Invest‘s functional currency is the Euro as of January 1st 2009.  Amounts
are in EUR thousands. Comparison between operational results in 2008 and 2009
is difficult due to significant currency effects after the weakening of the
Icelandic krona in 2008. 

Key figures - See Attachment				

• Marel is today the undisputed global leader in providing advanced equipment
  and solutions for the poultry, fish and meat processing industries, with an
  increased focus on the convenience food market.  Core business turnover in
  2009  was EUR 434 million and operational profit was EUR 25 million (adjusted
  EBIT). 

  Marel employs approximately 3,600 people, thereof 350 in Iceland, and the
  company‘s sales network extends to over 60 countries.  Annually, Marel invests
  around EUR 30-40 million in research and development.  Approximately 1% of
  Marel‘s revenues is derived from Iceland compared with close to 6% of total
  costs. 

• Össur is a world-wide leader in prosthetics and a top tier player within the
  bracing and support business after a number of successful acquisitions in that
  field in recent years. Össur‘s revenues in 2009 were USD 330 million with an
  EBITDA of US 67 million. Össur‘s has 1,600 employees, mainly in N-America and
  Europe; in Iceland, the number of employees is around 260. Annually, Össur
  invests USD 20-25 million in research and development. Less than 1% of Össur‘s
  income is derived from Iceland compared with about 9% of costs. 

• Stork is a diversified Dutch engineering conglomerate active in the aerospace
  and technical service sectors.  The group enjoys a good market position in the
  sectors and niches in which it operates and there is a clear strategy for
  driving value from each of the divisions. Fokker Aerospace showed a resilient
  performance in 2009, both in regard to revenues and operational EBITDA.  Stork
  Technical Services was impaired with a reduction in revenues and lower
  operating profitability, due to postponements of customer investments in the
  market. Looking ahead, the underlying growth in the market is good. At year
  end, the order book at Stork Technical Services remained strong, at a 16%
  higher level than in year beginning, which indicates that Stork Technical
  Services has been successful in securing new and extending long-term contracts
  and is well positioned to benefit from the ongoing recovery in markets. 

Outlook
In late 2008, the world saw an economic downturn of a higher magnitude than has
been seen since the Great Depression.  It now seems that the bottom is behind
us with global industrial production in general showing clear signs of
recovery.  Looking ahead, there is expected to be growth within the industries
where Eyrir Invests core holdings are placed - the food industry, health care
sector and energy industry. 

For further information, contact:

Arni Oddur Thordarson, CEO of Eyrir Invest

Tel: +354 525-0200

Priedai:

annual results 2009.pdf

press release.pdf

eyrir key figures 2009.pdf