A U.S. investor group headed by Centre Partners Management LLC and top industry executives Bernt O. Bodal and Jeffrey W. Davis announced today that it has closed its acquisition of the Oslo-based Aker RGI ASA's seafood assets in the United States, including the American Seafoods Company and Frionor USA, a value-added seafood processing company. As previously announced, Aker RGI ASA will retain an eight percent investment in the new company and also will hold warrants that, if exercised and when combined with the original investment, would represent a total interest of less than 20 percent of the new company's total equity.

The company is also announcing a significant investment partnership with two of the six Native Alaskan community non-profit organizations formed under the Community Development Quota (CDQ) program. The Coastal Villages Region Fund of Bethel, Alaska has already joined the investor group; the Central Bering Sea Fishermen's Association of St. Paul Island, Alaska also is expected to become a sizeable investor in the Company, subject to the completion of financing and the obtaining of state and federal approvals.

"American Seafoods has one of the best track records in the Bering Sea fisheries," says Phillip Lestenkof, president of the Central Bering Sea Fishermen's Association on Saint Paul Island. "We are making this investment for two reasons - it should provide us an attractive financial return and it will give us access to the Company's expertise to develop additional local fisheries on St. Paul Island."

The transaction fulfills a key objective of the 1998 American Fisheries Act (AFA) to boost domestic ownership of the U.S. fishing industry. Among its provisions, the Act limits foreign ownership of U.S. fishing industry vessels to less than 25 percent by October 1, 2001. The Act also restricts the fleet of catcher-processor fishing vessels in the Bering Sea/Aleutian Island pollock fishery and reallocates quotas of the annual pollock catch in that region.

"The American Fisheries Act provides us with the opportunity to acquire a well-managed company with an excellent record and impressive prospects," said Lester Pollack, managing director of Centre Partners Management LLC. "We understand the importance of the North Pacific fish stock for the long-term health of this industry and strongly support the continuing conservative management of these valuable resources. We are partnering with a first class team whose experience in this industry, knowledge of the local communities and vision for growing the Company are important ingredients for success. We are lucky to have them with us and we look forward to working together."

Centre Partners represents the lead investor in this transaction. Other significant investors include Bodal and Davis. Bodal is a former president and chief executive officer of American Seafoods. Jeffrey Davis is a former chief executive officer of Baader North America Corporation, a Florida- based seafood processing equipment manufacturer.

A new parent company, the American Seafoods Group LLC, will include two subsidiaries. The American Seafoods Company LLC will comprise the Bering Sea harvesting operations and will retain its current organizational structure. A new subsidiary, American Seafoods International LLC will comprise the value- added processing business located in New Bedford, Massachusetts, and feature the Frionor and Bayside Bistro brands.

Bodal will serve as chairman and senior managing director of the parent company, American Seafoods Group. Mike Hyde will remain president and chief executive officer of American Seafoods Company, the harvesting operations. Davis will serve as chief executive officer of the value-added processing operations, now renamed American Seafoods International. In addition, Hyde, Davis and Hallvard Muri, Chief Financial Officer of American Seafoods Company, will serve as Managing Directors of American Seafoods Group.

Founded in 1986, Centre Partners Management LLC is a private investment firm with a middle market focus that seeks to make friendly acquisitions and equity investments alongside management teams who have or desire a meaningful economic stake in the future success of their business. Through its current fund and three predecessor funds, Centre Partners has invested approximately $2.1 billion in over 50 transactions.

Aker RGI finalizes sale of American Seafoods to Bodal, Davis