Major shareholder announcements

Bakkavör Group Major Holdings

11.8.06

Name of party notifying Exista ehf.
Address of the party notifing Ármúli 3
Date of transaction 10.8.2006
Number of shares in transaction 87.883.488
Number of shares before the transaction 570.072.854
Number of shares after the transaction 657.956.342
Holdings of total nominal value before the transaction % 26,71%
Holdings of total nominal value after the transaction % 30,83%
Notification is based on Art. 33 (1) of the Act no. 33/2003 point(s) no.3. 8.

Additional information
Exista B.V. owned 522,608,287 shares in Bakkavör Group hf. before the above transaction took place. Exista ehf. is a primary insider in Bakkavör Group hf. due to the holdings of Exista B.V. Exista B.V. is fully owned by Exista ehf. The board of directors of Exista ehf. includes Lýdur Gudmundsson, chairman of the board of directors of Bakkavör Group hf. and Ágúst Gudmundsson, CEO of Bakkavör Group hf., who are, due to their positions, primary insiders in Bakkavör Group hf. The chief executive officers of Exista ehf., Erlendur Hjaltason and Sigurdur Valtýsson, are also primary insiders in Bakkavör Group hf.

Vátryggingafélag Íslands is the owner of 32,625,824 shares in Bakkavör Group hf., Líftryggingafélag Íslands hf. is the owner of 3,094,176 shares, Vördur Íslandstrygging hf. is the owner of 327,900 shares in Bakkavör Group hf. and Traustfang ehf. is the owner of 11,416,667 shares, thereof 10,416,667 through forward contracts. Since Exista ehf. is the owner of 100% of the share capital of VÍS eignarhaldsfélag hf., which is the owner of 100% of the share capital of Vátryggingafélag Íslands hf., the owner of 100% of Líftryggingafélag Íslands hf., the owner of 56% of Vördur Íslandstrygging hf. and the owner of 100% of Traustfang ehf., Exista ehf. is indirectly the owner of these companies' shares in Bakkavör Group hf. This involves a total of 47,464,567 shares in Bakkavör Group ehf., of which 10,416,667 shares are through forward contracts.

In parallel to this transaction the aforementioned shares held by Traustfang hf. in Bakkavör Group hf. have been transferred to Exista B.V., i.e. 1,000,000 shares and 10,416,667 shares through forward contracts.