American Seafoods Group LLC Announces Second Quarter Results.

Business Editors & Food/Beverage Writers

SEATTLE--(BUSINESS WIRE)--Aug. 5, 2002

American Seafoods Group LLC today announced its second quarter results for the period ended June 30, 2002.

Net sales increased 8.9% for the quarter to $95.0 million compared to $87.2 million during the same period in the prior year. EBITDA (net income before net interest expense, income tax benefit or provision, depreciation, amortization, unrealized foreign exchange gains or losses and non-cash equity-based compensation) increased 31.8% for the quarter to $37.9 million compared to $28.8 million during the same period in the prior year. On a six-month basis, net sales decreased 10.4% for the six months ended June 30, 2002 to $178.4 million as compared to $199.1 million during the same period in the prior year. EBITDA decreased 4.8% for the six months ended June 30, 2002 to $72.3 million compared to $75.9 million during the same period in the prior year. The results set forth above exclude the results of Pacific Longline Company LLC, which we distributed to our parent as part of our recapitalization in April 2002.

"We are pleased with the results of our A-season. While our roe prices were lower, we achieved an EBITDA just slightly down from that of the prior year," remarked Bernt Bodal, Chairman and Chief Executive Officer. "With the current favorable pricing environment for our surimi and block products, we are optimistic about our expected performance for the full year of 2002 as compared to 2001."

Pollock production increased slightly during the A-season versus the A-season in 2001 as a result of the six-percent increase in the 2002 total allowable catch for U.S. Bering Sea pollock fishery, offset by lower recovery rates. Pricing for pollock roe declined over the prior period, while surimi and fillet block pricing increased. Pollock surimi and block prices both have reached pricing levels that exceed the prior year by over 20%. Should these increased pricing levels for surimi and block continue, they will have a favorable impact on the latter portion of the year, when these products account for the substantial majority of the Company's production. "We see our TAC increase combined with these pricing trends as positive indicators heading into our B-season. The timing of these elements is also a factor as most of our surimi and block products are produced during the B-season," stated Bernt Bodal.

In April, 2002 the Company issued $175 million of 10.125% Senior Subordinated Notes (the "Notes"), which mature in 2010. Concurrently with the issuance of the Notes, the Company also entered into a credit facility with a syndicate of banks and drew $325.9 million under this credit facility, including $5.9 million under the $75 million revolver. Proceeds from these transactions were used, after fees and expenses, to repay all amounts outstanding under the Company's previous credit facilities, repay all amounts outstanding under two senior subordinated notes and pay a dividend to the Company's parent for distribution to its unit holders. As of June 30, 2002 the Company had zero outstandings under the revolving portion of this credit facility. On June 13, the Company filed with the Securities Exchange Commission a registration statement covering the exchange notes to be issued in connection with the foregoing transaction, and on July 24, the Company filed an amendment to that registration statement.

American Seafoods will host its conference call in conjunction with the release of the first quarter financial results live on Tuesday, August 6, 2002 at 9:00 a.m. PST (12:00 p.m. EST). Participants may call 800/311-6662 and enter access code 579113.

American Seafoods Group, LLC is a world leader in the harvesting, at-sea processing, preparation and supply of quality seafood. Harvesting a variety of fish species, the Company processes its catch into an array of finished products, both on board its state-of-the-art fleet of vessels and at its East Coast value-added processing facilities. From the ocean to the plate, American Seafoods has established a global sourcing, selling, marketing and distribution network bringing quality seafood to consumers worldwide.

This press release contains forward-looking statements. The words "will," "believes," "anticipates," "intends," "estimates," "expects," "projects," "plans," or similar expressions are intended to identify forward-looking statements. All statements in this press release other than statements of historical fact, including statements which address our strategy, future operations, future financial position, estimated sales, projected costs, prospects, plans and objectives of management and events or developments that the Company expects or anticipates will occur, are forward-looking statements. All forward-looking statements speak only as of the date on which they are made. They rely on a number of assumptions concerning future events and are subject to a number of risks and uncertainties, many of which are outside of the Company's control and could cause actual results to differ materially from such statements.

                     American Seafoods Group LLC
                         Financial Highlights
                  (Unaudited, dollars in thousands)

                                             Continuing Operations,
                                                excluding PLC (1)
                                             Quarter Ended June 30,
                                           2001        2002     Change
                                        ------------------------------
Statement of Operations Data:
  Net sales                             $ 87,210    $ 94,982      8.9%
  Cost of sales, including
   depreciation expense
   of $9,766 and $10,796,
   respectively                           58,915      59,096      0.3%
                                         --------------------
  Gross profit                            28,295      35,886     26.8%
   Gross margin                             32.4%       37.8%

  Selling, general and administration
   expenses                               14,401      27,149
  Depreciation and amortization (2)       10,058       1,639
                                         --------------------
  Operating income                         3,836       7,098     83.3%

  Interest expense, net                   (8,608)     (9,588)
  Foreign exchange gains, net              5,802       5,628
  Other                                       (1)       (434)
                                         --------------------
  Net income, before extraordinary item    1,029       2,704    162.8%
  Extraordinary item - debt
   extinguishment                              -     (14,718)
                                         --------------------
  Net income (loss)                        1,029     (12,014) -1267.5%

 EBITDA adjustments:
  Interest expense, Net                    8,608       9,588
  Income tax (benefit) provision               -          12
  Depreciation and amortization           19,824      12,435
  Unrealized foreign exchange (gains)
   losses, net                              (791)       (751)
  Non-cash equity-based compensation
   expense                                    87      13,906
  Extraordinary item - debt
   extinguishment                                     14,718
                                         --------------------
  EBITDA (3)                              28,757      37,894     31.8%
   EBITDA margin                            33.0%       39.9%

Balance Sheet Data:
  Cash and cash equivalents              $ 1,421     $ 2,830
  Inventories                             31,963      32,537
  Total working capital (4)                7,094      17,767
  Property, vessels and equipment, net   256,011     231,421
  Cooperative rights and goodwill, net   134,509     119,355
  Total assets                           506,850     489,342
  Total debt                             322,532     499,235

Other Data (quarter ended):
  Capital expenditures                   $ 1,783     $ 3,182

  Production (metric tons)                11,236       7,086


                     American Seafoods Group LLC
                         Financial Highlights
                   (Unaudited, dollars in thousands)

                                              Continuing Operations,
                                                excluding PLC (1)
                                           Six Months Ended June 30,
                                           2001        2002     Change
                                        ------------------------------
Statement of Operations Data:
  Net sales                             $ 199,143   $ 178,383   -10.4%
  Cost of sales, including depreciation
   expense of $17,918 and $15,312,
   respectively                           115,682     101,108   -12.6%
                                         --------------------
  Gross profit                             83,461      77,275    -7.4%
   Gross margin                              41.9%       43.3%

  Selling, general and administration
   expenses                                27,378      39,522
  Depreciation and amortization            19,043       3,338
                                         --------------------
  Operating income                         37,040      34,415    -7.1%

  Interest expense, net                   (18,437)    (16,849)
  Foreign exchange gains, net              10,043       6,571
  Other                                      (123)       (433)
                                         --------------------
  Net income, before extraordinary item    28,523      23,704   -16.9%
  Extraordinary item -
   debt extinguishment                          -     (14,718)
                                         --------------------
  Net income                               28,523       8,986   -68.5%

  EBITDA adjustments:
  Interest expense, Net                    18,437      16,849
  Income tax (benefit) provision               (1)         41
  Depreciation and amortization            36,961      18,650
  Unrealized foreign exchange (gains)
   losses, net                             (9,112)     (1,508)
  Non-cash equity-based compensation
   expense                                  1,095      14,522
  Extraordinary item - debt extinguishment      -      14,718
                                         --------------------
  EBITDA (3)                               75,903      72,258    -4.8%
   EBITDA margin                             38.1%       40.5%

Other Data (six months ended):
  Capital expenditures                    $ 4,520     $ 4,698

  Production (metric tons)                 41,372      42,285
  Average prices achieved:
   Pollock surimi (yen/kg)                    205         258
   Pollock roe (yen/kg)                     2,247       1,906
   Deepskin ($/lb)                        $  1.26     $  1.23
   Pollock block/PBO ($/lb)               $  0.85     $  0.98

    (1) Pacific Longline Company LLC has been excluded from these
        operating results as it was distributed to the Company's
        parent in April, 2002.

    (2) Amortization of cooperative rights and intangibles,
        depreciation goodwill of other and assets.

    (3) EBITDA is not a measure of operating income, operating
        performance or liquidity under generally accepted accounting
        principles. We include EBITDA only because we understand it is
        used by some investors to determine a company's historical
        ability to service indebtedness and fund ongoing capital
        expenditures. In addition, it should be noted that companies
        calculate EBITDA differently and, therefore, EBITDA presented
        by us may not be comparable to EBITDA as reported by other
        companies.

    (4) Total working capital is defined as total current assets
        (excluding current unrealized gain on derivatives) less
        current liabilities (excluding current unrealized loss on
        derivatives).