Company Announcement

Bakkavör Group acquires a UK produce and fresh prepared foods company

Reykjavik, 28 August. Bakkavör Group has further strengthened its UK business
with the acquisition of Exotic Farm Produce Group, a UK produce and fresh
prepared foods company. The consideration price, which remains confidential,
was financed through and paid by the Group's own cash resources.

Exotic Farm Produce supplies the major UK grocery retailers with speciality
fresh produce, fresh prepared vegetables and salads as well as fresh prepared
meals and meal accompaniments. The company is located in Lincolnshire in the UK
and employs 370 people.

The company will be consolidated into Bakkavör Group from the acquisition date,
but the acquisition will not have a material effect on the Group's financial
results during this financial year.

Ágúst Gudmundsson, Chief Executive Officer, said:

"Exotic Farm Produce Group has a good strategic fit with our existing
businesses and will further strengthen our position in the UK produce and fresh
prepared foods markets. This is a successful and well-invested business with
good prospects for continued growth through existing and new customers in the
UK and abroad."


Further Information:

Ágúst Gudmundsson, CEO
Tel: +44 (0)20 7266 6400

Hildur Árnadóttir, CFO
Tel: +354 858 9706


About Bakkavör Group

Bakkavör Group is a leading international food manufacturing company
specialising in fresh prepared foods and produce. The Group operates nearly 50
factories and employs over 17,000 people in eight countries. The Group's Head
Office is in Reykjavík, Iceland, and the business is listed on the OMX Nordic
Exchange in Iceland (www.omxgroup.com/nordicexchange Ticker: BAKK).

The Group's vision is to be recognised and respected as the world's leading
fresh prepared foods and produce provider. Bakkavör Group has attained leading
market positions in its key market areas of ready meals, pizzas, convenience
salads and leafy salads. In total, the Group makes over 4,700 products in 17
product categories, which are developed and sold predominantly under its
customers' own brands. In addition to the UK and Iceland, the Group also has
business operations in France, Belgium, Spain, South Africa, China and the
Czech Republic.


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