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## sust aining financial  strength 

## Confirming our commi tment to conservative financial management: In 2007, High Liner Foods embarked on a program to consolida te the distribution of value- added frozen seafood to the U.S. food service industry. 

We acquired FPI Ltd. in 2007 and Viking Seafoods, Inc in 2010 – never straying from our commitment to conservative financial management. In the discussion below, High Liner Foods CFO Kelly Nelson answers questions that have been posed by shareholders about the 2011 Icelandic USA Acquisition and the ongoing financial management of the company. 

## Q What does your capital expenditure program look like going forward? 

A Our capital budget for 2012 and 2013 should not be more than $35 million. That’s $11 million that will be spent between 2012 and 2013 in order to achieve all the synergies that the Icelandic USA Acquisition presents and another $16 million to improve our manufacturing footprint with the remainder being spent on system upgrades. This will mean investment in plant and equipment in order to reduce costs. We’re also upgrading our IT systems to establish a common platform across the company and build the capability to meet new regulations around food safety in both Canada and the U.S. and our sustainability goal of 100% sustainable seafood by 2013. 

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## Q Do you plan to make more acquisitions? 

A We continue to look for profitable growth and there continues to be opportunities to consolidate the North American seafood industry. Right now we are focused on integrating the acquisition and de-leveraging, but we continue to watch the marketplace. If the right acquisition comes along and we can do it within our current financing arrangements, we would look at it. 

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Q Do you plan to purchase shares under a normal course issuer bid as you’ve done in the past? 

A A normal course issuer bid is allowed under the terms of the new debt and we continue to see our stock as an attractive investment. We have already approved a new normal course issuer bid that allows us to buy 100,000 common shares and 100,000 non-voting equity shares over the next few months. 

## Q Do you expect changes in your dividend policy? 

A Our bank agreements and projection allow us to continue to pay the current level of dividends. As we achieve synergies and reduce our leverage we should be able to increase dividends. 

