(1) See Adjusted EBITDA definition page 37  Year-ended December 31, 2011 (In $000s) HLF  Viking  Icelandic USA  Consolidated Sales  622,114 37,523  8,952  668,589  Adjusted EBITDA (1)   49,255  4,483  959  54,697  Year-ended December 31, 2011 (In $000s) HLF  Viking  Icelandic USA (2) Consolidated Sales  622,114  37,523  281,370  941,007 Adjusted EBITDA (1)   49,255  4,483  26,447  80,185  If the Icelandic USA Acquisition had been completed at the beginning of 2011, based on numbers prepared for the Business  Acquisition Report that was filed with the TSX on March 16, 2012, High Liner’s 2011 financial highlights would be as follows: (1) See Adjusted EBITDA definition page 37  (2) Unaudited – results to December 18, 2011 were prior to the Icelandic USA Acquisition  On December 13, 2010, High Liner acquired the operations of Viking Seafoods, Inc. Since the acquisition was concluded  late in the fiscal year, 2010 includes only 20 days of  operations from the Viking Acquisition. In the management  commentary for the remainder of Section 5, we will include  the results of the Viking Acquisition in the analysis and will  not segregate the impact of the Viking Acquisition from the  operations, unless otherwise noted. This narrative will assist  the reader in understanding both the financial statements  and the underlying performance of the business in 2011  excluding Viking. that 2010 was the first year in many years where we did  not increase prices. In fact, we decreased selling prices on  commodity items and increased promotional activity on  value-added products to drive growth.  The current economic environment continues to create  volatility in the cost of seafood and other commodities.  Prior to the economic downturn, which began in 2008, many  species of seafood and non-seafood commodities reached  record-high costs. We saw decreases in late 2009 for many  of our seafood and non-seafood commodity costs, with the  lower costs continuing into the first half of 2010. However, in  the last half of 2010, we again experienced upward pressure  on costs. Due to our inventory positions and contracts in  place, the impact of the higher seafood and non-seafood  commodity costs was only marginally felt in 2010. However,  we did experience higher seafood and non-seafood  commodity costs in 2011 and we expect 1  higher average  seafood and commodity costs in 2012 relative to 2011.  Before discussing and analyzing the results of operations for  2011, it is important to review high-level trends, uncertainties  and market factors that impacted 2011. As mentioned, unless  otherwise noted, these comments will exclude the Icelandic  USA Acquisition’s impact on our 2011 results. As the Viking  Acquisition’s results were included in our operating results  for fiscal 2011, we will include commentary on these as well. Fiscal 2011 was a very successful year for the Company in an  uncertain economic environment. It was the first full year  after the acquisition of Viking and is one of the best years  that the Company has had in its history. While synergies  from the Viking Acquisition were realized in 2011, we expect 1 to realize additional synergies in 2012, primarily from  annualizing synergies that were put in place in 2011 but were  only included in our financial results for part of the year. In  addition, the Icelandic USA Acquisition will transform our  business in 2012, significantly increasing sales and EBITDA. Foreign exchange also impacts the results of the Company.  During fiscal 2010, the Canadian/U.S. dollar exchange rate  was relatively stable, with exchange rates ranging from  0.9946 to 1.0778. Likewise, in fiscal 2011, the exchange rate  was also stable, ranging from 0.9449 to 1.0604. See Section 8.4  below for a full analysis of the impact on foreign exchange on  our results.  The economic environment of the past few years was  challenging for many companies. At the same time as we  are facing a cost-conscious consumer, we have to deal with  food inflation. Increases in the cost of seafood, flour-based  ingredients and cooking oils required us to implement  price increases in fiscal 2009. For the first half of 2010,  cost increases on seafood and ingredients eased, meaning  5.2 OVERALL PERFORMANCE 32 HIGH LINER FOODS INCORPORATED