The following is a translation of part of Treka A/S stock exchange announcement of 12 February 2004. For avoidance of doubt, the Danish version shall prevail in case of divergences between the Danish stock exchange announcement and this translation.

2003 was a very unsatisfactory year for BioMar. For the first time in the company's history, the turnover fell. In addition, the company had to make considerable provisions for bad debt, write off the value of goodwill and write down the value of own fish farms. The ordinary result before tax was therefore a loss of DKK 418 million. The provisions for bad debt and the write-offs can mainly be ascribed to the prolonged crisis in the salmon farming industry.

However, there were also positive developments in 2003. An adjusted EBIT* result before the write-off of goodwill and provisions exceeding the normal level thus showed a profit of DKK 190 million. Total receivables had also been considerably reduced by the end of 2003 (even if the provisions for bad debt for the year are disregarded), and the credit risk relating to net receivables is regarded as lower. The reduction in receivables contributed to the first positive operational cash flow in many years, and the net interest-bearing debt was reduced by DKK 257 million.

As part of the new strategic focus, BioMar reduced its turnover concurrently with the marked reduction in receivables. The drop in turnover was more substantial than expected, however, and BioMar's market share accordingly decreased in 2003. The same did not apply to the Baltic and Chile segments. The drop in turnover caused unit costs to rise despite the reduction in operating expenses with a negative impact on profit as a result.

The following table shows key figures for the BioMar Group and the individual segments:

EBIT* and EBITDA* include interest income on receivables, as interest-bearing trade credits, etc. are part of normal customer relations.
(1) BioMar's external interest-bearing debt amounts to DKK 556 million at the end of 2003, while loans from Treka A/S amount to DKK 791 million.
Note: Chile has been included as a fully consolidated company with effect from 1 September 2002 and as an associated company up until that date.
Note: The figures for the corporate department have not been shown, and the total of the individual segments therefore does not equal the “Group” total.

(1) The part of losses or provisions for bad debt in BioMar's books that exceeds 0.75% of BioMar's turnover.
(2) Write-off of goodwill in addition to (1)
(3) Write-down of value of fish farms in addition to (1) and (2)

BioMar's net turnover fell by DKK 256 million (10%) in 2003, of which approx. DKK 200 million (7%) were related to exchange fluctuations. The largest fall was recorded in Norway whereas Chile had a positive development.

In 2003, BioMar's EBIT* amounted to DKK (239) million – a deterioration of DKK 454 million. The EBIT* for 2003 was influenced by write-offs on goodwill of DKK 106 million as well as losses and provisions for bad debts of DKK 341 million. Of that amount, approx. DKK 323 million can be characterised as losses and provisions exceeding the normal level, as the amount exceeds the 0.75% of annual turnover that BioMar considers normal losses. The ordinary result was also negatively influenced by an operating loss of DKK 22 million in own fish farms in the UK and a write-off of the value of DKK 67 million.

A total of DKK 496 million in balance sheet items was therefore written off as “extraordinary” items. After adjustment for these items, the Adjusted EBITDA* amounts to DKK 294 million, the Adjusted EBIT* to DKK 190 million and the Adjusted ordinary result before tax to DKK 78 million. Ordinary operations therefore yielded a positive result. In other words, the negative result is primarily a result of large write-downs of balance sheet items in the profit and loss account.

In 2003, the BioMar Group generated a very positive cash flow and reduced its net interest-bearing debt by DKK 257 million. The debt reduction was primarily due to a positive EBITDA* (before provisions for bad debt) and a reduction of receivables. The debt reduction was particularly big in the North Sea segment ( Norway and the UK ).

By the end of 2003, total assets amounted to DKK 1,677 million, a reduction of DKK 957 million. In addition to the fall in receivables, the write-offs of goodwill and a reduced level of investments resulted in a reduction of the balance sheet total.

Receivables, losses and provisions for bad debt on debtors in the BioMar Group. Trade conditions in the fish farming industry require that the fish feed producers grant their customers medium-term interest-bearing trade credits, and as a non-integrated fish feed producer, BioMar in previous years also granted relatively long operating credits to selected customers. The company therefore has substantial amounts of receivables. By the end of 2003, receivables totalled DKK 733 million, a fall of DKK 674 million compared with 2002. The fall is partly caused by losses and provisions for bad debt and partly by a reduction in turnover for the year and payments from customers.

The large losses and provisions for bad debt in 2003 were largely caused by credit granted during the 1999-2001 period and insufficient tightening of the credit policy in 2002. The decisions in question were made on the basis of an over-optimistic assessment of market trends.

Most of the losses and provisions for bad debt relate to operating credits granted by BioMar to a small number of customers. The operating credits were granted during the years 1999-2001 to finance the expansion of the fish farms. When salmon prices, after having been at a low level in 2002, unexpectedly continued to fall in 2003, many of the fish farms, burdened by heavy debts, were unable to generate the necessary cash flow to repay their creditors and finance the continued operation of the farms. Total losses and provisions for bad debt relating to the operating credits amounted to approx. DKK 150 million plus further losses and provisions of approx. DKK 100 million for feed credits to the same customers – losses that were unexpected and for which no provisions had therefore been made in 2002. To this should be added the write-down of the value of the outstanding amounts from the fish farms in the UK of DKK 89 million; funds that were originally supplied as operating credits.

Losses on receivables relating to other BioMar customers, who had been granted feed credits with a term that is standard for the industry, were also larger than normal during 2003, although not to the same critical extent as the few large credits.

The total amount of provisions for bad debt at the end of 2003 is considered to correspond to the current risk of losses as at the end of the financial year. There is less uncertainty about the amount of the provisions than in previous years, as the net amounts outstanding to the largest debtors by now represent a smaller part of total net amount outstanding, and there is considered to be less uncertainty regarding the future prospects of individual customers and the fish farming industry in general.

The considerable exposure to the fish farming industry and the size and nature of the individual debts nevertheless mean that there is a risk of further losses depending on the future development of the market for the customers' products. On the other hand, there might be an opportunity to reverse one or more large provisions for bad debt if the market or the financial situation of individual debtors improves considerably.

The risk that attaches to the debts depends primarily on the development of the price of salmonids, sea bass and sea bream, the demand for these products and the financial resources of the fish farmers. Some market analysts predict that fish prices in Europe will be somewhat higher in 2004 than in 2003 and that the demand will increase by a few per cent. Although this would improve the situation for the fish farmers, their financial situation would remain tight.

BioMar's credit control policy aims at securing the value of the receivables by insuring the credit risk, when appropriate. The total amount of provisions for bad debt equals approx. 30% of total gross receivables at the end of 2003.

Write-off of goodwill. In the light of the difficult market for fish farming and the likelihood that the market will remain uncertain and difficult in 2004, Treka/BioMar decided to write off goodwill in the amount of DKK 106 million in 2003. The write-off was announced in connection with the third quarter report for 2003.

Most of the amount written off relates to goodwill in BioMar Chile . A strategy process carried out during summer 2003 showed that it was unlikely the company would be able to deliver the returns previously expected. BioMar has drawn up and implemented a number of action plans to ensure a constant focus on improvement of BioMar Chile 's competitiveness and earning potential. During the second half of 2003, the new management in Chile succeeded in improving the company's image and the customers' trust in the company. The company also demonstrated satisfactory growth and improved results during the second half of 2003.

The fish feed industry, however, still has considerable excess capacity and the market is characterised by fierce competition and a pressure on prices. As a newly established company in Chile , BioMar found that it took longer than expected to create profitable growth. There is therefore no longer a basis for maintaining the goodwill item in the accounts, and a total DKK 100 million in goodwill in Chile was amortized and written off in 2003, of which the write-off amounted to DKK 92 million. The remaining goodwill written off relates to minor items in other BioMar segments.

Own fish farms. In 2003, BioMar converted its operating and trade credits in the cash-tight Unst Salmon Ltd fish farm to a 100% share ownership. In 2002, BioMar converted its receivable at Johnson Seawell into ownership. At the time of take-over, it was estimated that the best way to secure the values in the companies and to reduce the risk of loss on BioMar's outstanding receivables was to ensure continued operation.

In 2003, Unst Salmon and Johnson Seawell recorded a combined operating loss of DKK 22 million. At the same time, the further deterioration of the market meant that BioMar was forced to write off DKK 67 million of the book value of the fish farms.

Fish farming is not part of BioMar's core business, and the fish farms in the UK are for sale provided a satisfactory agreement can be reached.

It is still not BioMar's strategy to take an active interest in fish farming. It is nevertheless possible that future negotiations about debt restructuring for certain customers may cause BioMar to convert other receivables to temporary ownership in 2004 in order to secure BioMar's receivables. Each case will be evaluated on its merits to determine if it benefits the company to assume temporary ownership of a farm rather than to record an immediate loss.

North Sea segment. The Norwegian and Scottish fish farming industry experienced its worst crisis ever in 2003. The crisis was primarily caused by record low salmon prices. The total production of salmonids increased by approx. 3% in the North Sea segment.

The European prices of salmonids have been low since 2002. In 2003, the price of a 4–5 kg Atlantic salmon was approximately 15.5–22.5 NOK/kg, which was less than the level expected at the beginning of the year.

The 2002 and 2003 price levels were insufficient to ensure the profitability of the average fish farm, with e.g. production costs at Norwegian farms of approx. 23 NOK/kg. However, costs vary considerably between farms. Some farms have costs as low as 15 NOK/kg, whereas others have costs of around 27 NOK/kg. This difference can be attributed to differences in biological conditions, operating conditions and finance costs.

The low prices meant that most of the fish farms in Norway and the UK operated with a negative EBITDA. Many farms chose to speed up the harvesting and sale of the fish in order to generate the necessary cash flow. The result was an increased supply of fish and a further pressure on prices, which contributed to the crisis in 2003. As a result, many Norwegian and British fish farms suspended payments and/or went into liquidation during summer 2003. Both large and small fish farms went into liquidation. Even the liquidation of many fish farms, however, did not reduce the total supply of salmon, as most creditors decided to continue the operation of the struggling fish farms in order to optimise the value of the businesses and the fish.

In 2003, as a result of the crisis and the subsequent liquidations, BioMar North Sea was forced to make large provisions for losses on its trade and operating credits. The provisions for bad debt mainly related to a small number of very large operating credits that were granted to customers who expanded dramatically in 2000-2001.

As a result of the difficult market and BioMar's exposure, the quantity sold by BioMar North Sea fell by about 9% in 2003. BioMar tightened its credit policy, which limited sales to customers that were considered high risk, and this contributed to the drop in sales. Sales were also lost when customers suspended payments or went into liquidation, or if feed contracts were taken over by a competitor in connection with the refinancing of a fish farm. Finally, BioMar also lost sales because high water temperatures limited the growth of the fish, especially in areas where BioMar has a large market share. As a result of the factors mentioned above, the market share in Norway dropped, whereas it remained unchanged in the UK .

The Chile segment. The total production of salmonids remained unchanged in 2002-2003, but this figure covers an increase in the salmon production and a decrease in the production of sea trout and coho.

In 2003, the price of salmon was around 4.0–4.8 USD/kg (fresh fillet, export price from Chile ). With production costs around 3.0–3.6 USD/kg for this product, the profitability was generally good at the Chilean fish farms. The average production costs at a Chilean fish farm are about 5 NOK/kg less than in Norway for comparable products. The Chilean fish farms therefore became profitable again in 2003 after 2 years with low prices for salmon and sea trout. The considerable excess capacity (more than 50%) among the 5 fish feed producers nevertheless meant that fish feed margins remained low.

As far as competition is concerned, BioMar Chile was in a better position in 2003 than in previous years, as the company had benefited from research, product and customer synergies with the North Sea segment. In addition, the Chilean organisation has been strengthened with a new management team and improved integration between the country's two factories.

In 2003, BioMar Chile increased its turnover in terms of volume by 35% and the market share increased marginally. The reasons for this increase were the rapid growth of the company's customer base and the fact that it added a number of important Chilean fish farmers to its portfolio in 2003.

Baltic segment. The market in the Baltic segment (the Baltic area incl. Eastern Europe ) where trout is the main product, is generally characterised by low growth. In 2003, the growth rate was negative due to poor biological growth conditions, as the weather was too cold during the winter months (especially in Finland ) and too hot during the summer months. In addition, the prices of portion trout were low.

The market volume fell by about 3% to approx. 150,000 tonnes in 2003. BioMar Baltic maintained its position as market leader but lost turnover primarily in Germany and Finland .

Despite the decline in volume, BioMar Baltic managed to increase EBITDA* by DKK 3 million to DKK 51 million as a result of cost-effective production and logistics and competitive products.

Mediterranean segment. In the Mediterranean segment, where the main products are sea bass and sea bream, the market volume increased by 3% in 2003. The main growth area was the Eastern part of the Mediterranean , whereas France recorded a decline in volume.

BioMar experienced a 19% decline in turnover in the Mediterranean segment. The main cause was a substantial decline for BioMar Greece , where BioMar in 2003 tightened its credit policy considerably resulting in reduced sales. BioMar's market share primarily dropped as a result of restrictions in credit to customers considered being at risk.

High supply chain efficiency and reduced operating costs were unable to make up for the loss in turnover, and the EBITDA* margin of BioMar Greece fell in 2003.

The development in BioMar France was unsatisfactory in 2003. The company failed to considerably strengthen its position on the French/Italian/Spanish market and has not yet managed to make up for the turnover that was transferred to the new Greek factory.

Expectations
The expectations to future accounting figures are based on the same accounting policies as those used for 2003.

The net turnover of the BioMar Group is expected to amount to approx. DKK 2.5 billion in 2004. The BioMar Group's EBIT* (incl. interest income on receivables) is expected to be approx. DKK 120–140 million in 2004.

The expected EBIT* for 2004 is lower than the recorded EBIT* for 2003 adjusted for provisions for bad debt exceeding the normal level and write-off of goodwill. In 2004, BioMar will continue its tight credit policy, which is the reason for the expected reduction in EBIT*.

The expected result for 2004 is based on the presumption of a difficult but positive development in fish prices, the fish farming industry and the quality of BioMar's receivables. If these expectations prove incorrect, the Group may incur further losses on receivables in 2004 in excess of existing provisions for bad debt as well as a decline in turnover and profit. On the other hand, there might be an opportunity to reverse one or more large provisions for bad debt if the market or the financial situation of individual debtors improves considerably.

The supply of and demand for farmed fish and the corresponding price development influence the expectations to 2004. Some market analysts predict that fish prices in Europe will be somewhat higher in 2004 than in 2003 and that the demand will increase by a couple of per cent. The supply, demand, and price development are influenced by the general uncertainty that characterises economic trends and especially by the development in the catering and restaurant industries, which buy a large part of the salmon production. In addition, the expectations presuppose that consumers and supermarket chains continue to have a positive attitude to farmed fish.

Finally, BioMar's ability to maintain and develop its market position and profit margins in each of the countries in which the company operates also influences the expectations to 2004. Competition on the market in general and the effect of operational measures are somewhat unpredictable.

The management's expectations for the future are subject to uncertainty. Factors that could cause the actual results to differ considerably from the expected results are primarily: the development in raw material prices, salmon prices, energy prices, interest rates, exchange rates, competition and the general economic trend. Special attention is drawn to the development in salmon prices and the cash flow problems of the fish farmers. There is also a risk of negative consequences for the salmon farming industry in Norway if current EU initiatives regarding anti-dumping measures against salmon imports become effective.

Selected key figures for the BioMar Group

Accounting policies
The annual report for the BioMar Group has been prepared in accordance with the Danish Annual Accounts Act and the regulations pertaining to securities listed on the Copenhagen Stock Exchange. The accounting policies are consistent with those of last year with the exception that the Johnson Seawell and Unst fish farms have been treated as financial current assets in the 2003 annual report, as the Group intends to sell them, and are not included in the consolidated figures. In the annual report for 2002, Johnson Seawell was fully consolidated, line-by-line. The changed consolidation practice was implemented following a decision in 2003 to actively work on selling the farms. The change does not affect result and equity.

Appendix

Balance sheet figures for the Treka Group
BioMar Group is wholly owned by Treka A/S, a holding company listed on the Copenhagen Stock Exchange. At the end of 2003 the only operational activity in the Treka Group was the activities in BioMar. Below are outlined the balance sheet figures of the Treka Group, as this balance sheet better reflects the financial structure (e.g. amount of debt and equity) of the Group, than BioMar's balance sheet in isolation.