Bond offering amounting to ISK 6 billion completed - Share offering is expected to take place on 5 and 6 June with a shareholders list based on close of business on 28 May

Marel Food Systems hf.'s bond offering, which took place 22 and 23 May, has
been successfully completed. Bonds amounting to ISK 6 billion (€ 52 million)
were sold in the bond offering. Landsbanki's Securities Brokerage was the
manager of the bond offering. 

Marel Food Systems hf. intention is that the share offering will take place on
Thursday, 5 June, and Friday, 6 June, and will end at 16:00 that day. 
Shareholders in Marel Food Systems hf. wishing to participate in the share
offering must be listed in the company's share register on 2 June. Due to
clearance procedures on the Icelandic stock market (T+3), trades with the
company's shares need to take place prior to close of business on Wednesday, 28
May, if parties wish to be eligible in this part of the offering. 

In addition to shareholders, investors who so specifically request can
subscribe for shares in Marel Food Systems hf.'s offering, provided they
subscribe for at least 75,000 shares in the company. 

New shares in Marel Food Systems hf. on offer will amount in value to € 117
million. Should there be an oversubscription in the share offering, Marel Food
Systems hf.'s Board of Directors reserves the right to increase the number of
new shares on offer so that they will amount in value to € 147 million. The
actual number of new shares to be sold will be determined by the EUR/ISK
exchange rate and the offer price. An announcement will be made of the number
of shares to be offered and the offer price following a meeting of the Board of
Marel Food Systems hf. to be held on 3 June 2008. 

Corporate Finance of Landsbanki Íslands hf. will serve as manager of the share
offer.