HB Grandi hf. will form the daughter company Atlantic Pelagic B.V. in The Netherlands. Atlantic Pelagic will purchase the pelagic freezer trawler Engey from HB Grandi and operate the vessel for catching mackerel, horse mackerel, sardine, and sardinella off the coasts of Africa. Planned transfer of Engey to Atlantic Pelagic is in early April. Atlantic Pelagic will operate in joint cooperation with the Dutch fishing company, Parlevliet & Van der Plas, which will also market the products of Engey. By forming Atlantic Pelagic and operating Engey off Africa, HB Grandi is growing its business and utilizing better the company's investments. The growth of the company, following the mergers of the past couple of years, has created opportunities that are being harvested. The operation of Engey has been successful since the vessel started fishing in Icelandic waters in June 2005. The total catch value of 2006 amounted to 1.451 million ISK, or approximately 16 million Euro. It has, however, influenced its profitability, compared to land based operations, that prices of fish meal and fish oil have increased while prices of frozen herring have decreased. The whole crew of Engey will be laid off and a new crew hired in The Netherlands. Key positions will be held by Icelandic crew members. Further information on the formation of the company will be submitted when available.