Icelandic® USA Inc. acquires Ocean to Ocean Seafood Sales

Frozen Food Digest, July, 2003

Icelandic[R] USA, Inc., one of the leading seafood companies in the United States, and Ocean to Ocean (OTO), a leading importer and marketer of shrimp and shellfish based products, recently, announced that Icelandic[R] has purchased all assets of Ocean to Ocean Seafood Sales LLC.

OTO will operate as a separate company under the name Ocean to Ocean Seafood LLC. Terms of the transaction were not disclosed.

OTO is a US company, headquartered in Virginia Beach, VA with sales offices in many parts of the USA and Canada. In business for over 20 years, OTO is one of the larger importers and distributors of shrimp and shellfish in the United States.

"We are increasing our focus in this area because of consumer demand for shrimp," said Magnus Gustafsson, Icelandic[R] President and Chief Executive Officer. "Shrimp consumption has been growing rapidly in the USA. After doubling over the past fifteen years, shrimp now ranks number one in US seafood consumption. We believe that shrimp will be a tremendous growth vehicle for the Icelandic[R] brand in the years to come."

"Some 85% of all shrimp is imported," says Dave Brockwell, who established OTO with the Sandier Family in 1982, "OTO has built up strong long-term relationships with suppliers in many Asian and most other shrimp producing countries. We have sourcing agents in each country, who devote an important part of their work to ensuring consistent product quality."

Icelandic[R] USA Inc. has a long history of operation in the USA and has built one of the strongest brands in the foodservice market. It enjoys a leading reputation for both fillets and value added products from whitefish, salmon and other seafood. In addition to the foodservice sector, its sales to the retail sector have been a source of growth. Customers include many large seafood buyers and there is a trend towards fewer suppliers who offer a broader product range of products and higher levels of service. The agreement on the acquisition of OTO represents a major step towards product diversification into shellfish.

OTO bases its operations on sales primarily to the retail market in the USA and Canada, but a sizeable share of sales are also made to the foodservice market. This offers good opportunities and synergies.

Icelandic[R] USA can offer its food-service customers a broad variety of shellfish products and OTO's strong position in retail provides new opportunities for more products to that sector.

Icelandic[R] USA, Inc. (www.icelandic.com) had sales of approximately $170.0 million in 2002. The company employs more than 500 people. OTO had sales of $110.0 million in 2002 and employs 40 people.

For more information, contact: Magnus Gustafsson at Icelandic[R] USA, Inc. at 203852-1600. Or call David Brockwell of Ocean to Ocean Seafood Sales at 757-431-8500.