- EAC continues through negotiations  to press for payment of the approved
outstanding dividend of USD 45.7m is paid at VEF/USD 2.15. All future payments
will take place at VEF/USD 4.30. 
- Future import of raw materials and equipment for expansion programmes not yet
confirmed, but expected at new preferential rate of VEF/USD 2.60 
- Outlook for 2009 revised according to changed accounting principles
(hyperinflation in Venezuela) and adjusted for strong performance (in EAC
Foods) 

In company announcement no 1/2010 EAC advised that the Venezuelan Bolivar had
been devalued and that further advice would follow once more clarity concerning
the effects of the devaluation had been achieved. As advised, the official
exchange rate of the Bolivar (VEF) to the USD, which has remained at 2.15 VEF
since March 2005, is now fixed at 2.6 VEF, for the importation of food,
pharmaceuticals and other essential goods. For all other items the USD exchange
rate is fixed at 4.3 VEF. The existence of a third floating rate - known as the
parallel rate - has been officially acknowledged and will be managed through
central bank intervention to avoid excessive speculation. According to
President Chavez, the government aims to stabilise the parallel rate close to
VEF/USD 4.3 

The legislation regarding the official exchange rate is still under
preparation, but some important conclusions may be drawn on basis of the
existing information: 

- As a prioritised industry, EAC expects that EAC Foods will continue to
receive USD for its import requirements and expansion programmes at a
preferential rate (i.e. VEF/USD 2.60). At the present time, confirmation is
received for roughly 50% of the relevant import items, and the company
continues to pursue clarity for the remainder. 

- EAC continues through negotiation to press for payment of dividends approved
by CADIVI, the office under the Venezuelan central bank regulating currency
matters, prior to the devaluation is paid at the rate of VEF/USD 2.15. All
future payments, including royalty payments will be paid at VEF/USD 4.3. This
exchange rate will consequently be the exchange rate used for the income
statement and balance sheet of EAC Foods as of 1 January 2010. 

- Since Venezuela technically is in hyperinflation as of December 2009, the
accounts for EAC Foods for the entire year 2009 will have to be restated using
IAS 29. This affects the outlook for 2009 as set out in more detail in the
following, but does not affect the underlying operation or the cash flow of the
business. 

IAS 29 requires the financial reporting for EAC Foods to be restated to reflect
the current purchasing power at the end of the reporting period, and as a
result all non-monetary assets such as fixed assets and inventories etc. should
be restated to the current purchasing power as of 31 December 2009 using a
general price index from the date when they were first recognised in the
accounts. The income statement will be restated to reflect changes in the
general price index from the date of the transaction to the balance sheet date
31 December 2009. 

Under IAS 10 large changes in foreign exchange rates after the balance sheet
date are non-adjusting events. Accordingly, the 2009 accounts will not include
the impact of the devaluation, whereas the 2010 accounts will be impacted by
the devaluation. As noted, VEF/USD 4.30 will be used for future income
statements and balance sheets. 

Revised EAC Group outlook 2009
EAC Group outlook under historical accounting principles:
- Revenue of DKK 6.2bn (previous outlook DKK 6.5bn) and 
- Operating profit (EBIT) of around DKK 650m (previous outlook around DKK
600m). 
Revised outlook adjusted for hyperinflationary accounting:
- Revenue of DKK 6.5bn and 
- Operating profit (EBIT) of around DKK 500m.

The most material accounting adjustments affecting EAC Foods can be explained
as follows: 
- Revenue increases as it is restated for changes in the general price index
from the date of transaction to 31 December 2009. 
- EBIT decreases due to higher costs of goods sold and fixed costs following
restatement for changes in the general price index from the date of the
transaction to 31 December 2009 and significantly higher depreciations
following the restatement of the fixed assets to a higher inflation adjusted
level. 

Subsequent event disclosure as well as detailed disclosure of the accounting
impact of implementation of IAS 29 will be included in the presentation of the
2009 accounts. In addition, to assist the comparison of 2009 actual results and
the outlook for 2010, the presentation will include the 2009 hyperinflation
adjusted accounts, translated at the 2010 currency exchange rate of VEF/USD
4.3. 

Outlook for 2010
The expected outlook for 2010 will as usual be addressed in connection with the
announcement of the annual result for 2009, scheduled for 25 February 2010. 


Yours sincerely,

The East Asiatic Company Ltd. A/S
(A/S Det Østasiatiske Kompagni)


For additional information, please contact:

President & CEO Niels Henrik Jensen
+45 3525 4300
nhj@eac.dk 


Group CFO Michael Østerlund Madsen
+45 3525 4300
mom@eac.dk 

www.eac.dk