- Proposed issue of subordinated convertible debt


The Board of Directors of Icelandic Group hf. has decided that the Company's
AGM will be held on 18 April at 4:00 pm. Details of the meeting will
subsequently be dvertised. 

The Board of Directors of Icelandic Group hf. has agreed to submit a motion to
shareholders at the Company's upcoming AGM that shareholders approve an
authorisation to the company to take out subordinated debt, with a 4-year
maturity and a total principal in ISK equivalent to EUR 41,000,000 at the time
the loan is issued, and a fixed annual rate of interest of 23%, granting
creditors the right to convert claims on the Company under the loan to share
capital in the company at a share price of ISK 1.00. Assuming the above amount
to be ISK 5,000,000,000, this would mean that the Company would issue new share
capital of up to 11,444,332,050 nominal value, after four years. The intent is
to offer the above-mentioned bond to the Company's shareholders and
institutional investors in a private placement. The value of the
above-mentioned loan would be used to further reinforce the Company's
infrastructure and to reduce the proportion of short-term financing in the
Company's total funding. The Board of Icelandic Group hf. furthermore agreed to
withdraw a motion previously approved for submission that the AGM increase
share capital by as much as the equivalent of EUR 30,000,000. 

For further information:
Finnbogi A. Baldvinsson CEO of Icelandic Group tel: +49 1723 198 727

About Icelandic Group
Icelandic Group (OMX Nordic Exchange: IG) consists of an international network
of production and marketing companies selling seafood products on global
markets.  In several markets the company enjoys the prominent position of its
brand, ICELANDIC, especially within the food service sector. The company is
also a major supplier to the retail sector through its branded or private label
production. The Group employs approximately 4,900 people.  The personnel
include renowned experts in the fields of fishing and primary processing,
product innovation and value-added processing, and in the worldwide marketing
of seafood products.