Dear staff members

The Central Bank’s case against the Samherji management has been dismissed 
The conclusion of the case is that no punishable offence has been committed
The Central Bank’s allegations and search of premises had no foundation
The Central Bank must accept responsibility

Last week, the office of special prosecutor dismissed a legal case against myself and a number of Samherji employees. A letter from the prosecutor’s office contains the following statement: "To be precise, it was concluded by the Office that the results of the case investigation regarding alleged misdemeanours and related incidents did not indicate the eventual possibility of a conceivable personal criminal liability [mine] or that of other individuals accused of alleged breaches relating to the case. For this reason alone the office terminated its processing of alleged breaches relating to the case, since lack of evidence sufficed to exclude a potential criminal prosecution with regard to the alleged offences." 
I am particularly grateful to receive this outcome, at long last, after an investigation lasting close to four years. I feel this conclusion represents a significant victory for us and a recognition of our professional integrity in our work. I have repeatedly made known our readiness to cooperate in the clearing up of this case and I have never excluded the possibility that mistakes might have been made at some point. On the other hand, I have always maintained that we conducted our operation in good faith. This matter could have been clarified much sooner if the Central Bank had so wished. It would appear, however, that a relentless effort was maintained to find a weakness in our operation in order to justify the harsh beginning of this investigation.

Samherji's German subsidiaries, Icefresh GmbH in Frankfurt and Cuxhavener Reederei GmbH in Cuxhaven have acquired a 20% share in the Norwegian company Nergaard AS, which is one of the largest
seafood companies in Norway.

Nergaard AS has a long history in the Norwegian fisheries and is an integrated fishery group whose business activities include fishing, processing and sale of seafood products. The group operates
five trawlers and a few production companies in North Norway, with headquarters in Tromsø. The yearly turnover of Nergaard has been close to 35 billion ISK per year and it´s processing
factories have processed nearly 50,000 tons of whitefish and 100,000 tons of pelagic fish per year. The company's products include frozen and fresh ground fish, salted fish, dried fish, frozen
herring, capelin and mackerel.

Samherji began participation in the German seafood industry in 1994. The operations have been successful, operating trawlers fishing in the North Atlantic. Director of the German fishing enterprises
is Haraldur Grétarsson.

Icefresh GmbH was founded in Cuxhaven in 2004 with the purpose of processing and marketing fresh fish for the German market. The company has grown rapidly and has acquired a strong position in the
German market for fresh fish. In 2012 Icefresh moved all its activities to Frankfurt. This year´s turnover is estimated around 10 billion ISK and processed raw materials around 15,000 tons. The
company's growth has been remarkable and investment in Nergård is a logical continuation since over 80% of the turnover stems from Norwegian fish and fish landed in Norway. The MD of Icefresh
GmbH is Sigmundur Andrésson.

Samherji welcomes the guests of the Great Fish Day to Dalvik Saturday August 10th. The great Fish Day gives everybody a chance to come together, have fun and enjoy seafood,
everything of no charge to the guests.
 

Welcome to visit us at The European Seafood Exposition in Brussels 23rd to 25th of April 2013

- according to an audit carried out by the British audit firm Baker Tilly LLP
• With respect to allegations from the Central Bank of Iceland as to the underpricing of Samherji’s products sold to related parties, Seagold Ltd, Samherji’s affiliate in the UK, commissioned an independent analysis and audit of the company’s operation.
• The task was carried out by experts from Baker Tilly UK Audit LLP (www.bakertilly.co.uk), an independent member of Baker Tilly International which is one of the world’s larger firms within its area of expertise, with a total staff of approximately 25,000.
• It was the clear and categorical conclusion of this audit that the transactions in question gave no cause for concern and that the business dealings of Seagold Ltd. with related parties were carried out in the same way as transactions between non-related parties. Thus, there was no cause for making any alterations, neither with regard to pricing nor pricing policy.
• Samherji has already published a report from IFS-FINANCE AND RESEARCH which arrives at the same conclusion; no problems exist relating to the pricing of Samherji’s products.
• During the period covered by the Central Bank investigation, Samherji/Ice Fresh Seafood exported products amounting to a total of ISK 113 billion. From its own products, the company’s sales to related parties came to ISK 15.4 billion; thereof ISK 14.3 billion, or approximately 93%, from transactions with Seagold.
• The conclusions of the audit conducted by Baker Tilly UK Audit LLP, as well as results obtained from IFS-FINANCE AND RESEARCH conclusively indicate that the Central Bank of Iceland’s allegations of underpricing by Samherji, in transactions with related companies, are without foundation.

With regard to the media coverage relating to the affairs of Samherji I, in my capacity of the company’s legal counsel, wish to make the following statement:

Allegations as to the undercutting
of prices from Samherji’s vessels to its subsidiary in Germany are completely unfounded and Samherji in Iceland is not transferring monetary assets out of Iceland to Icefresh GmbH. All
assertions to that effect are ridiculous and completely out of step with reality.

“Samherji has in every respect complied with the law both as regards foreign exchange transactions and in other
matters. The actions taken by the Central Bank of Iceland yesterday are completely unjustified and must either be based on incorrect
information or due to other reasons that we are not aware of” says Þorsteinn Már Baldvinsson, CEO of Samherji hf. As has been revealed, the Foreign Currency Department
of the Central Bank of Iceland has conducted a dawn raid on the offices of Samherji hf. The Central Bank of Iceland has not given Samherji’s management any explanation for these
actions.
 

The European Seafood Exhibition has been busy this year and it is clear that we are
experiencing a very lively market in the Seafood business. There seems to be a great demand for most species and prices are high.

- Útgerðarfélag Akureyringa established
A sales agreement was signed this weekend between a new Daughter Company of Samherji and Brim Seafood Company, selling Brim´s assets in Akureyri. The new company will be named
Útgerðarfélag Akureyringa. The agreement is signed with the reservation of approval due to competitive restrictions.