Announcement from Eimskipafélag Íslands hf

Thursday, October 16, 2014
In light of a statement published by the Icelandic Competition Authority on 15 October 2014, it is clear that the news of the alleged restrictive practices of Eimskip and Samskip is premature.

The Icelandic Competition Authority claims in the statement that it cannot confirm the coverage in RÚV's Kastljós on Tuesday night. The Competition Authority also emphasized that the investigation has not reached the stage where its conclusion can be predicted. Eimskip is astonished by the coverage of RÚV in this context. Listed companies must follow laws and regulations on handling of insider information and distribution of such information is prohibited.

In case of suspicion of illegal distribution of insider information, Eimskip is legally obliged to report on such behavior to relevant authorities. Therefore the Company has notified both the Icelandic Financial Supervisory Authority and Nasdaq Iceland of possible infringements.

Eimskip has also sent a letter to both the Icelandic Competition Authority and the Special Prosecutor requesting all documents and data related to the said coverage of Kastljós on 14 and 15 October. The purpose is to be able to respond to the allegations made and to fulfill legal obligations towards Nasdaq Iceland and the Company's shareholders.

The Company has advised its attorneys to prepare a report to the Police and request investigation of alleged leak of confidential information to RÚV.

The severity of the matter reflects in the fact that the Company's shares have received observation status by Nasdaq Iceland, which may cause the Company, its shareholders and the market considerable damage.

There is a vast difference between a report and an indictment. Individuals are innocent until proven guilty by a court of law. The matter is still under investigation and uncertain whether an indictment will be issued. It is tragic that confidentiality cannot be upheld by regulatory authorities, resulting in leakage of confidential information to the media. Such practices are unfair and to not give the accused an opportunity to defend themselves.

Finally, the Company reaffirms that it rejects all allegations of any violation against competition law.