Bakkavör Group's results for the first nine months 2008: EBITDA £87.9 million in the first nine months of the year

•  Turnover £1.2 billion in 9M, up 10% and £402.8 million in Q3, up 7%

•  EBITDA £87.9 million in 9M, down 24%, and £29.4 million in Q3, down 26%,
   including restructuring costs of £4.8 million in 9M, of which £1.7 million in
   Q3 

•  EBITDA margin 7.3% in 9M and 7.3% in Q3 (underlying EBITDA margin 7.7% in 9M
   and 7.7% in Q3, excluding restructuring costs) 

•  Operating profit (EBIT) £54.7 million in 9M, down 37%, and £18.2  million in
   Q3, down 39%
 
•  Cash flow from operating activities £44.3 million in 9M, down 46%, and £28.8
   million, up 41%, in Q3 

•  Shareholders' earnings, excluding loss on other financial assets, amounted to
   £5.8 million in the first nine months 

•  Return on equity 3.3%, excluding loss on other financial assets, compared
   with 19.2% in 9M 2007
 
•  Earnings per share 0.3 pence in 9M excluding loss on other financial assets,
   compared with 1.7 pence in 9M 2007 

•  Loss on the Group's economic interest in 10.9% shareholding in Greencore
   Group PLC under a CFD (contract for difference) £58.5 million in 9M, of which
   £12.3 million in Q3
 
•  In October, the Group relinquished its 10.9% economic interest under a CFD,
   as a result of a withdrawal of the funding source 

•  As a part of ongoing review, further restructuring in ready meals proposed in
   Q3 and October 2008 

Ágúst Gudmundsson, Chief Executive Officer:

“Bakkavör Group is progressing in very challenging conditions as we continue to
focus on our business priorities to mitigate inflationary costs, improve
operational efficiencies, increase market share and drive significant cash
generation. As such we are making firm groundwork towards our stated intention
of returning to profit growth in 2009. 

As expected, the Group's profitability in the quarter continued to be affected
by its withdrawal from a proportion of its ready meals business in the second
half of 2007 and subsequent restructuring, as well as steep increases in raw
material and utility costs. The quarter was also marked by a further downturn
in consumer confidence and unsettled summer weather in the UK which affected
our sales performance during the period. The Group however successfully gained
market share in ready meals and other core categories late in the quarter which
will increase sales revenues in the remainder of the year. 

This month the Group relinquished its 10.9% economic interest in Greencore
Group. Turmoil and fluctuations in the global financial markets resulted in the
withdrawal of the funding source, making it necessary for the Group to
relinquish this economic interest. The withdrawal of the funding source was in
no way a reflection of the financial standing of Bakkavör Group. 

Looking ahead, we expect the trading environment to remain tough for the
remainder of the year and into 2009. We will continue to focus on our key
business priorities in order to drive sales and profit performance and remain
confident of our commitment to the fresh prepared foods sector. The Group has a
diverse range of products across a wide and strong customer base as well as the
ability to develop new products and ranges rapidly. Bakkavör Group remains
focused on upholding and strengthening its position in the fresh prepared foods
and produce markets, underpinned by its ability to successfully meet changing
consumer needs.”