• Eimskip proposes to create a new, financially strong shipping and logistics business and exit the cold storage business • These proposals are subject to the consent of the financial creditors of Eimskip. In order to reach agreement with the financial creditors Eimskip is filing for composition • Day to day operations of the shipping and logistics business including the payment to trade suppliers will be unaffected • The new business will be owned by the financial creditors of Eimskip which includes The Yucaipa Companies (“Yucaipa”), a US private equity investor as a minority shareholder • Eimskip sells 49% of Versacold Atlas and gives an option for the remaining 51% to Yucaipa. • Eimskip sells three reefer vessels in Norway Eimskip files a composition proposal that anticipates that the financial creditors of Eimskip will own the new shipping and logistics business. Since October 2008 Eimskip has been working with foreign and domestic advisors to develop a financial re-organisation proposal. The company has an unsustainable debt burden resulting from failed acquisitions, significant guarantee claims and the downturn in trading resulting from the economic crisis in Iceland and around the world. The objective of the board of directors remains to maximise the returns to creditors and in so-doing to ensure the continuation of the Icelandic and North Atlantic operations and safeguard around 1,500 jobs. An initial step in the re-organisation is to safeguard the Icelandic business by transferring certain operations to Eimskip Island ehf, a wholly owned subsidiary of Eimskip. These actions are expected to ensure that daily operations in Iceland, including the payment of trade suppliers will not be disrupted. The other subsidiaries of Eimskip will be unaffected. New Eimskip will be entirely owned by the financial creditors of Eimskip: • Landsbanki (old and new) as a secured lender and the majority holder of the unsecured claims will own 45% of the new company • Yucaipa will as secured lender surrender existing secured debt, and invest €15m of new capital into New Eimskip, in order to acquire 32% of the new company • The remaining 23% of New Eimskip will be owned by the other unsecured financial creditors, representing more than 50 different creditors • The existing shareholders of Eimskip will not participate in New Eimskip going forward The secured creditors of Eimskip, Yucaipa, Old Landsbanki and Islandsbanki support these proposals. Landsbanki and Islandsbanki will continue to finance real properties within the new company going forward. Eimskip is filing for composition in order to allow its unsecured financial creditors the opportunity to review these proposals. Unsecured financial creditors will be requested to vote on the proposals at the conclusion of the composition process. Eimskip estimates that returns to unsecured financial creditors will be approximately 12% of the total outstanding claims. Eimskip exits the cold storage business and reduces fleet capacity. Eimskip has reached an agreement to sell 49% of Versacold Atlas and grant a call option over the remaining 51% to Yucaipa. Yucaipa is a large investment fund with investments focused on the retail, logistics and transportation of food. Yucaipa owns the largest cold storage company in the US, Americold. The Versacold Atlas sale process, which was commenced in September 2008 and managed by two leading global investment banks, concluded with lower bids than initially hoped. The final offers received were unacceptable and provided no equity value to Eimskip. Yucaipa, a bidder in the original process, indicated a willingness to participate in the re-organisation of Eimskip in order to facilitate the sale of Versacold Atlas and to take a minority stake in the new shipping and logistics business. Yucaipa has acquired the ABN Amro secured loan to Eimskip, totaling approximately €120m as a precursor to the acquisition of Versacold Atlas. Yucaipa has exchanged a proportion of the ABN Amro loan for 49% of Versacold Atlas and has an option to purchase the remaining 51%. Finally, Eimskip has sold three reefer vessels in Norway to Atlantica Shipping and reduced indebtedness by €30m. Eimskip will book a loss of €176m relating to these transactions. Next Steps The filing for composition will be an important milestone in the financial re-organisation of Eimskip. The board of directors will subsequently apply for de-listing of Eimskip's shares from the OMX Nasdaq Nordic Exchange Iceland. If the proposal for composition is accepted, the total group obligations in interest bearing debts will reduce from around €1,600m to around €100m in the new business going forward. New Eimskip will have a strong balance sheet after the composition that will allow it and its group companies to grow and prosper. Gylfi Sigfusson, CEO and President of Eimskip commented: “I believe that this is a vital step in the process to resurrect Eimskip and that the proposal offers the best outcome available to all the creditors of the group. I hope that our creditors see it that way and vote for these proposals that will see a financially strong Eimskip emerge with the financial strength needed to withstand these difficult economic times and provide a platform and increasing value in the future. I am pleased to announce the involvement of Yucaipa with Eimskip, as I believe that the support of a foreign investor into Iceland is a very significant step for our whole economy and demonstrates that there are investors willing to support Iceland going forward. We see Yucaipa as much more than a financial investor as they will also bring operating expertise and strategic options to our re-constructed business. We look forward to exploring the options for Eimskip and other Yucaipa portfolio companies to realise the obvious opportunities for Eimskip to service the cold storage business. Our main goal, however, will be to continue to provide services in Iceland, the North Atlantic, the Faroe Islands and Norway. We have worked hard to reduce capacity in the past six months and re-size our business to the reduced demand seen across our entire industry. Our employees have also shown great unselfishness and support in these difficult times. I would like to emphasize that the composition process is not expected to affect the day to day operations of Eimskip in Iceland or around the world, and would encourage anyone who believes they may be affected to contact us and discuss any concerns. We all hope to ensure that any operational disruption is minimised. Our financial creditors have provided vital support to Eimskip in recent months. I would like to thank them for their support and hope that they agree with the board of directors and the executive management team that this proposal offers the best available outcome to all creditors. The restructuring of Eimskip is important for the restructuring of the Icelandic economy being one of the largest employer in Iceland and vital for the countries imports and exports."