Iceland Seafood International hf.: SFS and Fisherm

As a leading player in the Icelandic and European seafood sector the company believes it is incumbent upon them to make a statement regarding the above subject matter.

As has been widely reported, negotiations between Fisheries Iceland (SFS) and the various Fishermen's unions broke down earlier this week, leading to uncertainty on when fishing of larger boats/vessels will recommence.  The small boat fleet in Iceland has continued supplying the markets throughout this period.

At Iceland Seafood International, six out of seven of the Group's companies operate outside of Iceland, including three factory operations in Europe. This geographic diversity provides the Group with a robust position.  The majority of these foreign companies are not solely reliant on Iceland for supplies and are in a position of securing raw materials and products from other countries. Outside of fresh products, the Group's foreign subsidiaries entered this period with healthy stocks which have to date enabled continued supplies to our customers.

The strike therefore has so far not materially affected the financial performance of ISI and the potential effects on the 2017 results will be dependent on various factors, one being how long the fishing fleet in Iceland is in-active.

ISI will continue to work closely with operating suppliers in Iceland and internationally to mitigate the effects of the strike on our customer base and like all companies in the sector look forward to the prompt resolution of this strike.

Elsewhere, the Group this year remains focused on its strategy to explore acquisition opportunities in Europe and looks forward to announcing its annual results in late March.