Bangkok--6 Oct--Thai Union Frozen TUF announces acquisition of shares of Avanti Feeds Limited (AFL), which is India’s second largest shrimp feed manufacturer, in order to make its presence in a country of strong potential in shrimp production and enhance the market opportunities of its non-shrimp products in one of the fastest growing and largest economies in the world. The share acquisition is worth approximately Bt40 million. According to Mr. Thiraphong Chansiri, President of Thai Union Frozen Products PCL. (TUF), Thailand’s major processor and exporter of canned and frozen seafood, TUF will purchase 1,190,000 units of the Indian firm’s newly increased shares at a price of 40 rupees per piece. After the investment, TUF will own a 14.99% stake in AFL. Avanti Feeds Limited is a manufacturer and exporter of shrimp feed and frozen shrimp. The shares of the company (ranked as India’s second largest shrimp feed manufacturer) are currently listed on the Bombay Stock Exchange. The investment is made possible mainly due to the long term tie between TUF’s subsidiary Thai Union Feedmill (TFM) and Avanti Feed Limited. TFM specializes in production and distribution of aqua feed products for shrimp and fish in Thailand. The Thai firm has been supporting Avanti with its technical know-how on feed production for black-tiger shrimp over last few years. In the past, the Indian government only allowed local farmers to raise black tiger shrimp. However, the government has recently changed its stance and started to allow white shrimp farming that can potentially increase India’s overall shrimp production and boost its export volume in the near term. TUF, therefore, expects strong growth in shrimp production in India as a result of the government’s change in policy. Similar expansion was seen when countries moved shrimp production from black tiger to white. Over years, TFM has developed expertise and skills in white shrimp feed manufacturing that should benefit Avanti through this transaction. Given the combination of these favorable factors, TUF foresees promising opportunities ahead in shrimp feed business in India. Moreover, thanks to the continual economic growth in India, TUF management also expects to expand sales of its canned and frozen seafood items to the Indian market through this connection. Indian market is attractive because of its size and the potential of TUF’s seafood that can be easily fitted into the diet of an average consumer in India. It is likely that canned seafood, such as tuna, can be well accepted by consumes in India. “Because of the growth achieved over last few years, shrimp feed operations has contributed significantly to TUF’s business. TFM registers YoY growth rates of 120% in net earnings and 5% in sales during the first 6 months in 2008. This growth was achieved despite a host of negative business factors, namely hiking raw material and transportation costs. We are confident that this investment will bring satisfactory returns to both TUF and Avanti Feeds. As TFM’s know-how and technical expertise in shrimp feed manufacturing should support Avanti Feeds’ growth and our Indian partner’s ability to seize more growth opportunities that should lead to higher sales and earnings, TUF should also benefit from Avanti Feeds’ existing dominant market position to realize all these potentials as well as expanding the market presence of our non-shrimp seafood products in India through this connection,” concluded Mr. Thiraphong. For more information please contact: Corporate Communication Department Thai Union Frozen Products PCL Tel. 02-298-0024 ext. 675-678