2008-05-22 01:58:29 CEST

2008-05-22 01:59:57 CEST


REGULATED INFORMATION

English Islandic
Atorka Group hf. - Financial Statement Release

- 1Q Results 2008 


Key figures from Atorka Group hf. quarterly settlement:

Consolidated Financial Statement:
•  Atorka Group's consolidated loss after taxes in the first quarter of the year
   was ISK 7,168 million, wich can largely be explained by the weakening of the
   Icelandic krona. 
•  The operating income in the first quarter of the year was ISK 21 billion.
•  The Group's total assets at the end of March were ISK 120.4 billion.
•  The equity was ISK 2.5 billion at the end of March.

Parent Company's Financial Statement:
•  The after-tax loss in the first quarter of the year was ISK 1,870 million.
•  The total assets at the end of March were ISK 64.7 billion. 
•  The equity capital at the end of March was ISK 19.9 billion.
•  The equity ratio is 31% at the end of March.

Magnús Jónsson, CEO of Atorka:"Atorka's performance in the first quarter of the year is acceptable in
demanding market conditions. Despite declining share price of listed assets,
we view our asset portfolio positively for the long run. Atorka's investments
projects are developing well with continuing operational improvements and
growth. During the quarter, Atorka increased its holdings in Geysir Green
Energy, and we are now the largest shareholder, with about 44%. Given the
rising price of oil and increased environmental requirements, it is clear that
our investments in renewable energy entail great opportunities for further
value creation.” 

Major Events 
•  Atorka increased its shareholding in Geysir Green Energy (GGE) and is now the
   largest shareholder, with about 44% holding. 
•  The first drilling project of Hekla Energy GmbH, a subsidiary of Iceland
   Drilling in Germany, which began in Mauerstetten, Bavaria, now well along.
   The first hole is expected to be finished next June, but plans call 
   for drilling 3-4 holes, each of which will be between 4000 and 5000 m deep. 
•  In February Iceland Drilling Co. Ltd obtained certification for its quality
   control system under ISO 9002:2000. Environmental affairs have an important
   role in the company's operations. 
•  Promens has begun building a new plant in Slovakia, to manufacture components
   for the automotive industry. The new factory will replace an older factory.
   The manufacture of components for the automotive industry is steadily moving
   to Eastern Europe and other low-cost areas. 
•  Promens has increasingly emphasized product development. The company has
   received an award for innovation from cosmetic product manufacturers for new
   air-free packages capable of protecting chemical contents from sunlight and
   oxygen and has received good attention from pharmaceutical and personal care
   industry. The company has pending patent for air-free packages. 
•  The share in Amiad has been increased to 24%. Amiad Filtration is a leader in
   the international market in production of water treatment equipment. The
   company's turnover increased by 30% last year, and EBIT by 65%, and Amiad's
   orderbook is strong. 
•  The share in Romag has been increased to 23%. Romag is a leading manufacturer
   of specialized glass solutions and has developed, among other products,
   PowerGlaz, a photovoltaic glass laminate which converts light into
   electricity. For the first 6 months of the year 2008 the turnover increased
   by 69% and profit by 21%. The company has increased its market share in
   Europe. Romag has recently entered into an agreement with Gulf International
   Trading Group, with the goal of expanding its market area to the United Arab
   Emirates. 
•  The shares in Asian Environment Holdings have been increased to over 17%. The
   company purchased a factory with a productive capacity of up to 85,000
   m³/day, and will expand it up to 135,000 m³/day. The company will own and
   operate the water purification plant for 30 years. The total value of the
   investment is about $34 million. 
•  Atorka‘s results are reflected in the Parent Company Accounts but not in the
   Consolidated Accounts. Key decisions are made related to the Parent Company
   such as currency hedge to hedge the investments of the Parent Company from
   fluctuating exchange rate. This now results as loss in the Consolidated
   Accounts because of the weakening of the krona. 
•  The results in the first quarter have in part been recovered, and the profit
   in the second quarter to date is more than ISK 900 million. 
•  Atorka has a strong financial position, and has secure financing on feasible
   rates to cover the financing to more than mid year 2009. 
•  Before the end of the quarter, most of the exchange-rate profit from the
   weakening of the Icelandic krona was realised. 
•  The company's cash position was about ISK 11 billion at the end of March
2008. 


Future prospects
Atorka's prospects for its investment projects are good. Emphasis will continue
to be on supporting and expanding the investment projects in the company's
asset portfolio. Most of Atorka's investment projects are relatively
independent of economic fluctuations, and most of the companies are operating
in growth markets. There are ongoing efforts for the development of Geysir
Green Energy, and Atorka sees great opportunities for further value creation in
that company. Promens will continue striving for further growth with "buy and
build" with emphasis on East Europe. Atorka's strong financial position gives
the company opportunities to support its current investment projects as well as
examine new opportunities spawned by the current market conditions. 


Further information can be obtained from:
Magnus Jonsson,                                                                
Valdis Arnardóttir 
Chief Executive Officer, tel: +354 540 6200                             
Head of Corporate Communication, tel: +354 840 6217 

Atorka Group's interim financial statements can be found on the Company's
website: www.atorka.com