Ocean Choice International Signs Definitive Agreement to Purchase FPI Primary Group Assets

    ST. JOHN'S, NL, Aug. 24 /CNW/ - Ocean Choice International Inc. announced
today that it has reached a definitive agreement to purchase the Primary Group
Assets of Fishery Products International, including all of the Newfoundland
based primary processing plants and vessels, the offshore shrimp and turbot
business in Newfoundland, the offshore scallop business in Nova Scotia and the
sales offices in Europe and Asia.
    Ocean Choice expects the official closing of the transaction to take
place in the next 60 days, subject to Provincial Government and other
regulatory approvals.
    The net cost of the acquisition to Ocean Choice is $143.5 million, which
includes a payment to FPI of $158.5 million and the sale of the Asian procured
cod business (for sales to North America in FPI brand) to High Liner Foods
(purchaser of FPI's manufacturing and marketing division) for $15 million.
    Ocean Choice looks forward to a strong relationship with all
stakeholders. The company will continue to be a committed player in the
fishing industry. Ocean Choice is dedicated to a prosperous and successful
fishery in Newfoundland and Labrador.
    Ocean Choice will continue to supply customers with the Ocean Choice
brand in all markets, and will supply the FPI brand directly to customers
outside North America. Ocean Choice has also entered into an agreement with
High Liner Foods to be the exclusive supplier of FPI brand products from
Atlantic Canada.
    Ocean Choice is proud to note a partnership with Visir, a family owned
Icelandic fishing company. Visir has invested as a minority shareholder in
Ocean Choice and brings with it significant knowledge and technology in the
groundfish business. Ocean Choice looks forward to a successful working
relationship with Visir.
    Ocean Choice was advised in the transaction by Landsbanki Corporate
Finance and Landsbanki Corporate Banking. Landsbanki is a leading Icelandic
bank offering a full range of services to the international seafood industry
and has been working with Ocean Choice since 2004.
    The principals of Ocean Choice have significant experience in seafood
processing and international marketing. The growth realized through this
purchase will create one of the most diversified seafood companies in Atlantic
Canada. The acquisition will also create opportunities for our international

    Ocean Choice International Inc., a member of the Penney Group, was formed
in 2000 as the parent company for a number of operating companies already
existing in the Newfoundland fishing industry. Ocean Choice is a major
processor of Snow Crab, Lobster, Northern Shrimp, Pelagics, Cod, Redfish,
Turbot and Mussels.

For further information:

For further information: Cathy Dornan, (709) 685-3875

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