Reykjavik, 5th October 2007, Bakkavör Group has further strengthened its UK business with the acquisition of Welcome Food Ingredients Ltd, a UK flavourings and sauce producer. The consideration price, which remains confidential, was financed through and paid by the Group's own cash resources. Welcome Food Ingredients was established in 1994 and specialises in using fresh and dried ingredients to create and manufacture flavourings and blends such as sauces, pastes and dressings for the food industry. The company is located in Nottinghamshire and employs 115 people. Welcome will be consolidated into Bakkavör Group from the acquisition date, but the acquisition will not have a material effect on the Group's financial results during this financial year. Ágúst Gudmundsson CEO of Bakkavör Group, said: "The acquisition of Welcome Foods Ingredients brings to the Group an added value business with good prospects for continued growth through existing and new customers in the UK." Further Information: Ágúst Gudmundsson, CEO Tel: +44 (0)20 7266 6400 Hildur Árnadóttir, CFO Tel: +354 858 9706 About Bakkavör Group Bakkavör Group is a leading international food manufacturing company specialising in fresh prepared foods and produce. The Group operates 55 factories and employs around 20,000 people in eight countries. The Group's Head Office is in Reykjavík, Iceland, and the business is listed on the OMX Nordic Exchange in Iceland (www.omxgroup.com/nordicexchange Ticker: BAKK). The Group's vision is to be recognised and respected as the world's leading fresh prepared foods and produce provider. Bakkavör Group has attained leading market positions in its key market areas of ready meals, pizzas, convenience salads and leafy salads. In total, the Group makes over 4,700 products in 17 product categories, which are developed and sold predominantly under its customers' own brands. In addition to the UK and Iceland, the Group also has business operations in France, Belgium, Spain, South Africa, China and the Czech Republic. To subscribe to Bakkavör Group's mailing list, please log onto: www.bakkavor.com/subscribe