FPI Limited Announces Necessity For Inventory Write-Down (Public Holding Company of Fishery Products International Limited).

ST. JOHN'S, Newfoundland--(BUSINESS WIRE)--Feb. 9, 1996--FPI LIMITED (TSE, ME: FPL ) The Chairman of Fishery Products International, Mr. Victor Young, today issued a statement to shareholders regarding the necessity for FPI to take an inventory write-down during the fourth quarter of 1995:

"Following a review of year-end inventory values in relation to their net realizable value, it is estimated that an inventory write-down in the order of $3.5 million will be required (subject to audit). Inventory at year-end totalled approximately $120 million. Continuing weak market conditions and a decline in the price of certain key product categories in the fourth quarter, most notably Canadian snow crab, have necessitated the write-down. Market conditions (which did not improve in the quarter as anticipated) also will impact unfavourably on fourth quarter results. FPI's year-end audited results will be available at the end of February.

With respect to 1996, FPI's ongoing corporate strategy is aimed at: (a) an earnings improvement in U.S. operations, including the initial impact of cost savings from the plant consolidation project announced in late 1995; (b) favourable performance from coldwater shrimp, scallops, redfish and lumproe operations; (c) an improvement in Canadian crab operations, based on a significant reduction in the cost of raw material; (d) expected reductions in the cost of procured raw materials for value-added production; and (e) new product introductions in Canada and the United States."

CONTACT: FPI Limited

Victor L. Young, [phone]

Chairman and Chief Executive Officer

St. John's, Newfoundland