Since 9 December 2008 Bakkavör Group has announced its intention to seek bondholders' approval of extension of maturies of bonds listed on NASDAQ OMX Iceland. In relation to securing extensions on current maturities of bonds listed on NASDAQ OMX Iceland in 2003 (BAKK 03 1), constructive discussions with key bondholders are on-going. The Group however will not be able to meet the repayment due today, 15 May, of the BAKK 03 1 bonds. The Board of directors of Bakkavör Group remains confident that discussions with key bondholders will reach a successful conclusion and that the Group will secure support for the extension of the 2003 bonds. Bakkavör announced on 31 March 2009 that it had secured fully committed facilities across all operating businesses for the next three years, to 30 March 2012. These agreements provide sufficient covenants and liquidity headroom to support the Group's business plan and clearly demonstrates the financial stability of the operating businesses and the lenders' faith in the on-going future of the business. A further update will be provided in due course. Contacts: Iceland: Investor Relations Snorri Gudmundsson Bakkavör Group hf Tel: +354 550 9710 Email:investor.relations@bakkavor.com UK and international: Fiona Tooley Citigate Dewe Rogerson Mobile: +44 (0) 7785 703523 Tel : +44 (0)121 455 8370 Email: fiona.tooley@citigatedr.co.uk