High Liner Foods Reports $0.25 Earnings Per Share For Fourth Quarter Fiscal 2004

Business Wire, Feb 16, 2005

LUNENBURG, Nova Scotia -- High Liner Foods Incorporated (TSX:HLF) today reported its financial results for the thirteen week period ended January 1, 2005 (all amounts in Canadian $). Comparative results for fiscal 2003 have been restated to reflect accounting for the Arnold's Cove business segment as discontinued operations following its disposition in October 2004.

Financial and operational highlights for the fourth quarter include:

- Net income of $3.0 million ($0.25 per share), up from $0.7 million ($0.04 per share) for the fourth quarter of 2003;

- Sales (which consisted entirely of Packaged Foods sales) of $62.1 million, a decrease of 10% after adjusting for the strengthening Canadian dollar;

- Operating EBITDA, excluding unusual items, of $4.1 million compared with $4.4 million for the fourth quarter of 2003;

- Completion of the disposition of the Arnold's Cove fishing assets.

Financial and operational highlights for full fiscal year 2004 include:

- Packaged Foods sales of $269.5 million, an increase of 1% when adjusted for the exchange rate and removal of fishing-related sales;

- Net income of $8.2 million ($0.66 per share), down from $45.8 million ($4.49 per share) in 2003 which reflected the gain on the sale of the Nova Scotia-based fishing assets;

- Successful launch of 40 new products, including High Liner Signature(TM) Wild Pacific Salmon in a Teriyaki Sauce and Haddock in a Lemon Herb Sauce, a wild salmon product for the seafood departments of grocery stores and Fisher Boy Fun Buckets.

"Our premium seafood products in Canada continued to deliver strong performance during the fourth quarter. Our U.S. brands were challenged by market and competitive forces that negatively impacted their contribution to our results," said Henry Demone, President and Chief Executive Officer, High Liner Foods Inc. "Higher commodity prices and promotional costs in the quarter, particularly in the United States, dampened the positive effect on income of the stronger Canadian dollar."

Financial Results

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(Amounts in             Thirteen    Fourteen    Fifty-Two Fifty-Three
 thousands of              Weeks       Weeks        Weeks       Weeks
 Canadian $ except    -----------------------------------------------
 per share amounts)         2004        2003         2004        2003
                                  Restated -               Restated -
                                    See note                 See note
                                       below                    below
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Sales                  $  62,132    $ 70,520    $ 269,494   $ 293,253
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Operating EBITDA           5,603       4,389       18,635      22,450
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Income before the
 following                 3,891       3,995       14,821      16,390
Litigation costs           (255)           7        (315)        (42)
Other income (loss)        (397)         (2)        (397)         122
Non-operating
 transactions                842     (2,293)          895      37,915
Income taxes                 392       (402)      (3,735)     (3,024)
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Net income from
 continuing
 operations            $   4,473    $  1,305     $ 11,269   $  51,361
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Net loss from
 discontinued
 operations (net of
 taxes)                $ (1,488)    $  (635)      (3,107)   $ (5,557)
---------------------------------------------------------------------
---------------------------------------------------------------------
Net income             $   2,985    $    670     $  8,162   $  45,804
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Basic earnings per
 Common Share:
 Net income from
  continuing
  operations           $    0.39    $   0.10     $   0.95   $    5.05
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Net loss from
 discontinued
 operations            $  (0.14)    $ (0.06)     $ (0.29)   $  (0.56)
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Net income             $    0.25    $   0.04     $   0.66   $    4.49
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Net income from
 continuing
 operations excluding
 non-operating items    $   0.34    $   0.23     $   0.89   $    0.93
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Note: In 2004 the Company changed its method of accounting for stock options, expensing the cost of these in the accounts. Also, comparative results for fiscal 2003 have been restated to reflect the requirement to account for the Arnold's Cove business segment as discontinued operations following its disposition in October 2004.