Announcement regarding a possible offer for Geest

The Board of Bakkavör Group notes recent press speculation and the movement in the Group's share price and can confirm that the Group and its advisors are in early-stage discussions with Geest that may or may not lead to an offer being made by Bakkavör Group for the entire issued share capital of Geest. Any such offer, should it be forthcoming, is likely to be made in cash.

The Directors of Bakkavör Group will advise shareholders and the market of any significant developments in due course.

A further announcement will be released later.

For further information please contact:

Bakkavör Group

Agust Gudmundsson Group Chairman

Tel: 020 8728 5000

Lydur Gudmundsson CEO

Tel: 020 8728 5000

Citigate Dewe Rogersson

Fiona Tooley

Tel: 0121 455 8370/07785 703523

Kaupthing

Helgi Bergs

Tel: 020 7 529 5222