Bakkavör Group takes over the reins at Geest Plc

Bakkavör Group takes over the reins at Geest Plc in accordance with Bakkavör Group’s binding offer made on 8 March 2005 that has since been approved by Geest’s shareholders on 20 April. Geest Plc will be de-listed from the London Stock Exchange on 16 May and payment to shareholders will be made on 27 May.

Bakkavör Group is now the largest food manufacturer in chilled convenience food on the UK market and enjoys a leading position internationally. The Group operates over 40 factories in five countries and has approximately 13,000 employees. It manufactures 4500 products in 16 product categories under retailers own label. The combined turnover of Bakkavör Group and Geest Plc in 2004 was £995 million and the combined EBITDA amounted to £99.4 million.

The management of Bakkavör Group has strongly emphasised the importance of retaining key employees in the acquisition process and consequentially the management board of Geest will remain unchanged.  A new Board of Directors at Geest was elected today.

Barclays and Kaupthing Bank will provide a loan of £575 million for the acquisition, of which £500 million will be provided by Barclays which is the single largest loan by a bank to an Icelandic company.  The total enterprise value is £694 million.

A presentation in relation to Bakkavör Group’s takeover will be held on 27 May at 4:30 p.m. at Idnó.  At the presentation Ágúst Gudmundsson Executive Chairman and Lýdur Gudmundsson CEO will present the effects of the takeover on Bakkavör Group’s operations and its future prospects.

For further information please contact:

Ágúst Gudmundsson Executive Chairman

Tel: +44 20 8728 5015

Lýdur Gudmundsson Chief Executive Officer

Tel: +44 20 8728 5015