JOINT VENTURE BETWEEN SSC AND NORTHERN LINK LTD INTO SEAFOOD VALUE ADDED PROCESSING

The Scottish Salmon Company Limited ("SSC") is pleased to announce that jointly with their major shareholder Northern Link Ltd ("NL"), it has established Scottish Seafood Investments Ltd ("SSI"). SSI will subsequently invest into companies engaged in the value-added processing of seafood in the UK. SSI is to be financed 33% by SSC and 67% by Northern Link Ltd.

SSC is also pleased to announce that SSI is in the final stages of negotiations to make an investment into Associated Seafoods Ltd ("ASL"). ASL is a Scotland-based holding company set up by an experienced management team, including Bill Hazeldean and Dr Stewart McLelland who are currently the CEO and COO of SSC, with an objective to invest into value-added processing of seafood. ASL will concentrate on value-added processing of salmon (smoking, ready-to-cook, ready-to-eat, etc.) and adding other species to complement its value-added offering.

SSI's initial investment in ASL would be £0.6M, giving SSI an initial ownership of 50 % of the ordinary shares in ASL. As new acquisitions are made by ASL, SSI has committed to additionally invest up to £12.9m into ASL over a 5 year period (up to £4.3m to be contributed by SSC) and the original shareholders of ASL have committed to invest up to an additional £0.5M.

The joint venture will enable SSC to accelerate its growth in the seafood value-added processing in the UK and to advance one of SSC's key strategic goals of expanding its "farm to customer" value chain. NL's role in SSI will be as financing partner, taking on the majority of the investment risk while the business is developing. Once ASL completes the creation of a viable and successful seafood value-added processing business, SSC will have the opportunity to fully integrate the business into its own operations.

For Information: www.scottishsalmon.com
Su Cox
su.cox@scottishsalmon.com
The Scottish Salmon Company

The Scottish Salmon Company is the leading independent producer of Scottish salmon, providing superior salmon to both the local and international markets. The Scottish based and operated company is a fully-integrated seafood company, built around the provenance, taste, freshness, sustainability and health benefits of its salmon product.

The Company is engaged in all stages of the value chain from smolt production to harvesting, processing and sales.  Operating from over 40 sites on the Hebrides and West Coast of Scotland, the company currently employs over 350 staff.  The Scottish Salmon Company currently produces about 24,000 tonnes of Scottish salmon annually, accounting for about 20% of Scottish production.