Lakeland was one of the most profitable salmon producers in the UK in 2005, with an EBIT/kg gwt sold fish of NOK 5.9. In the first quarter of 2006, the group generated some NOK 7.4/kg gwt sold fish, an improvement of some NOK 3.6 compared to the same period in 2005.

The Culmarex group was one of the largest and most profitable seabass/seabream producers in Spain in 2005, with an average EBIT/kg sold fish of about NOK 8.5. In the 1^st quarter of 2006, Culmarex S.A. (the parent company in Spain) obtained about NOK 9.0/kg sold fish, an improvement of NOK 1.5 compared to the same period in 2005.

The group’s financial position has further improved. Net interest-bearing debt per 31.03.2006 amounted to NOK 205 mill, a decrease of NOK 16 mill compared to year end 2005. As per 29.05.2006 the group had NOK 79 mill in free cash and available credit facilities. Together with a good cash flow, the group should have enough free liquidity to finance its planned organic growth over the next few years.

Lakeland has entered into an agreement to acquire the remaining 50% of Sea Products of Scotland Ltd (SPoS), a company located in Glasgow and which over the past few years has sold all Lakeland’s salmon production. After this acquisition, Lakeland will own 100% in SPoS. Lakeland has also entered into an agreement to increase its shareholdings in Marine Products Ltd to 80% from today’s 20%. Marine Products is operating a filleting factory just outside Glasgow.

The Board of Directors of Marine Farms ASA has decided to apply for a stock listing on the Oslo Stock Exchange. The plan is to be listed in the autumn of 2006. Parallel to this process, the Board of Directors of Marine Farms ASA will continuously evaluate possible acquisitions or other strategic initiatives that may increase shareholders value going forward.