Investor News

Investors holding a total of 65.65% of outstanding MARL 06 1 bonds (“the Bonds”) have accepted Marel hf.’s conditional offer (the “Offer”), announced on 1 November 2010, to repurchase the Bonds at par on the date of repurchase. The total value of the possible repurchase is ISK 1,510 million at face value. Following the possible repurchase of the Bonds, the value of the outstanding bonds in the class is ISK 790 million, or 13% of the total class, which is ISK 6,000 million at face value.

Settlement of the Offer will occur three business days after Marel announces that the conditions to the Offer – namely, that Marel has obtained satisfactory financing – have been met.

The Bonds were issued by Marel in February 2006 and listed on the NASDAQ OMX Iceland (ISIN No: IS0000012177), with maturity on 8 February 2012.

Erik Kaman, CFO:
“We are grateful for the positive response from Marel bondholders to our offer. The possible repurchase of these bonds will further reduce our currency risk, as well as being an important step in our strategy to establish a stable and cost efficient new financing structure for the company. It is our goal to finance the company’s operations in our revenue currencies. We are currently in formal discussions with a limited number of international banks on such a structure.”

MARL 06 1 is one of two Marel bond classes listed on the NASDAQ OMX Iceland. The other, MARL 09 1, is repayable at Marel’s discretion until maturity in November 2011. It is Marel‘s intention to fully repay this class subject to the availability of satisfactory financing.

Marel hf.’s advisors in the repurchase process are H.F. Securities.



For further information, please contact:

Jon Ingi Herbertsson
Investor relations, Marel
E-mail: jon.herbertsson@marel.com
Tel: (+354) 563-8451