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Bergen, Norway, May 8, 2008 - (ABN Newswire) - The Group reports in accordance with International Financial Reporting Standards (IFRS). In the first quarter of 2008 Lerøy Seafood Group had consolidated operating revenues of NOK 1,317 million, which is a decrease from NOK 1,491 million for the same period in 2007. The Group's operating profit before fair value adjustment biomass was NOK 68.7 million vs. a corresponding figure of NOK 125.0 million for the first quarter of 2007. The Group's operating margin before fair value adjustment biomass amounted to 5.2 % for the fist quarter this year vs. 8.4 % for the first quarter of 2007. In the first quarter of 2008, the Group achieved an operating profit after fair value adjustment biomass of -105.3 million vs. a comparable NOK 88.5 million for the first quarter of 2007. Income from affiliated companies totalled NOK 3.6 million in the first quarter 2008 vs. NOK 16.7 million the first quarter of 2007. Adjusted for fair value adjustment biomass the figures are NOK 6.3 million and NOK 21.6 million respectively. The Group's net financial items for the first quarter of 2008 amounted to NOK -30.6 million compared to NOK -17.3 million for the first quarter of 2007. The Group's profit before tax before fair value adjustment biomass was NOK 44.4 million vs. a corresponding figure of NOK 129.3 million for the first quarter of 2007. Net earnings for the first quarter of 2008 correspond to a profit before fair value adjustment biomass of NOK 0.65 per share, against a corresponding figure of NOK 2.05 per share for the first quarter of 2007. The number of outstanding shares is 53,577,368 shares. The Group's return on capital employed (ROCE) before fair value adjustment biomass was 5.6% vs. 14.1 % for the same period last year. The Group's financial position is solid with an accounting equity of NOK 3,688 million, corresponding to an equity ratio of 51.3%. The Group's net interest-bearing debt at the end of March 2008 was NOK 1,842 million against a corresponding figure of NOK 1,754 million per 31.12.2007. The Board has recommended for the company's Ordinary General Assembly, which will be held 20 May 2008, that dividend for 2007 is set to NOK 1.80 per share. If the dividend is approved, it will be paid out 2 June 2008. The share will be quoted ex dividend 21 May 2008. The Group aims to generate sustainable values through its activities. For this reason there are stringent requirements to risk management and long-term thinking in the development of sustainable strategic business processes. During the last years the Group has developed to be one of the worlds leading producer of salmon and salmontrout, and has confirmed its position as a major part of the seafood distribution in Norway and Sweden, and strengthened its position as the largest exporter of seafood in Norway. The Group has in a combination of takeovers and building alliances made it possible to offer its key national customers a cost efficient national distribution of fresh seafood. The Group's focus on sales, distribution, and processing will be further strengthened the coming years. The Group's processing activities in Sweden, and factories in France, are examples of possible target areas in the future. It is the Board's belief that the Group's strategic and financial freedom of action in conjunction with current earnings also in the future will enable the Group to be an active participant in the seafood industry's value generating structural changes regionally and globally. Lerøy Seafood Group will therefore continue to consider possible investment and merger alternatives as well as alliances which can strengthen the basis for further profitable growth and creation of sustainable values. Lerøy Seafood Group shall develop further and grow through regional development in a global perspective. The Group's level of activity is good, and the Board of Directors believes future prospects for the Group to be favourable. Considering the international nature of the Group's activities, developments in the world economy will always have an impact on the Group's activities. So far this year, the price level of Atlantic salmon is considerably lower than for the same period last year, though somewhat higher compared to the fourth quarter in 2007. The Group expects a positive price development compared to the first quarter of 2008. This, together with an improved productivity gives rise to a positive profit development for the rest of the year. In the first quarter of 2008, the Group exported, in line with its market strategy, a wide range of seafood products from Norway to a considerable number of countries. The largest of these markets were France, Japan, USA, and Sweden. We are also happy to see a further positive development and strengthened position for our national distribution activities. Demand for the Group's products is good. The competitive situation in the international food markets requires that the company to continue the quest for profitable growth and customer satisfaction through cost effective and market-oriented solutions. The Board believes that the Group's strategic business development over the past few years, together with the underlying growth in productivity and market adjusted structure, provide a more robust platform for earnings in the coming years. Questions and comments may be addressed to President and CEO Ole-Eirik Lerøy or CFO Ivan Vindheim. Bergen, 7 May 2008 The Board of Directors of Lerøy Seafood Group ASA
