Company Announcement

Bakkavör Group acquires a 51% stake in a Czech Ready Meals Manufacturer

Reykjavik, 11 July 2007, Bakkavör Group has further strengthened its operations
in Continental Europe with the acquisition of a 51% stake in Heli Food Fresh, a
Czech fresh prepared food manufacturer. The Group will acquire the remaining
49% in April 2010.

Heli Food Fresh specialises in the manufacturing of ready meals, soups and
sauces for the Central European market. The company is located south of Prague
in the Czech Republic and employs 76 people. It has a turnover of ?3.6 million
and trades with leading European retailers.

The consideration price, which remains confidential, was financed through the
Group's own cash resources. The acquisition will not have a material effect on
the Group's overall trading results during this financial year.

Ágúst Gudmundsson CEO of Bakkavör Group, said:

"This acquisition supports our commitment of growing our business across
Continental Europe. The ready meals market is growing rapidly in Central Europe
and as Heli Food Fresh already supplies a number of our existing customers,
this transaction provides us with an opportunity to support our key customers'
expansion in this region."

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 46
factories and employs over 17,000 people in seven countries. The Group's Head
Office is in Reykjavík, Iceland, and the business is listed on the OMX Nordic
Exchange in Iceland, formerly Iceland Stock Exchange which was acquired by the
OMX Nordic Exchange in October 2006, (www.omxgroup.com/nordicexchange Ticker:
BAKK). Bakkavör Group was founded in 1986 and during its 20-year history the
business has grown significantly and today Bakkavör Group is a leading provider
of fresh prepared foods and produce.

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 and China and is
well-positioned for further expansion.

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