near term synergies. Achieving near term synergies is expected to reduce our leverage to 3.8X within two years and below 3X as quickly as possible. 

I am confident that we will extract the full strategic and financial benefits of this acquisition as planned and return to our traditional leverage targets. Our experience with the acquisition of FPI Ltd. in 2007 and Viking Seafoods, Inc. in 2010 are ample proof of our ability to integrate acquisitions quickly and extract all possible synergies. 

Not only are the financial benefits of the Icelandic USA Acquisition compelling, the assets are an exceptionally good fit for High Liner Foods. The company was one of our largest and toughest competitors in the food service channel with great products that complement our own line, one that continues to grow through innovation. One of our more exciting new FPI products is FireRoasters,  launched in late 2010 in the food service market. The success of the products has encouraged us to roll the line out in 2012 into clubs and retail markets in the U.S. and the food service market in Canada, and as Flame Savours  under the High Liner brand in Canada. 

## Our planet, our promise 

Achieving $100 million in EBITDA is a corporate objective, but we are just as committed to a goal established in 2010 – to distribute only certified sustainable products by 2013. Our initiatives are discussed in detail on pages 8 and 9. Our efforts have been recognized by Intrafish Media with an award that recognizes progressive vision and innovation in seafood sustainability. I was named 2011 Person of the Year, but the award was really won through the 

hard work and support of High Liner Foods employees and partners in Canada, the U.S., and around the world. 

## Outlook 

To achieve our goals of profitable growth and sustainability, we must continue to run our current business well; plan and execute the integration of the Icelandic USA Acquisition; and achieve the planned synergies. To ensure we are successful, we are making investments in systems and infrastructure to strengthen an already world-class business platform and prepare High Liner Foods for the next stage in our growth. 

I would like to thank our shareholders for their investment in our company and for the feedback, views and ideas that so many of you share with us throughout the year. We appreciate your insight and are working hard to deserve your trust. 

We are deeply saddened by the passing of Senator Fred Dickson on February 9 this year. Senator Dickson joined the High Liner Foods board at the time of the 1984 restructuring, serving until 1994. He returned to the board in 2000. He was an active member of the Executive and Audit Committees and will be greatly missed. 

We would also like to express our appreciation to Randy Bell, who will not be standing for re-election to the board at our upcoming annual general meeting. Randy’s keen awareness of events in Newfoundland and Labrador allowed him to make an important contribution to our progress over the years. 

We look forward to updating you on our progress as we execute our strategy. 

(Signed:) 

Henry Demone President & CEO 

