1174874--4/11/2006--AMERICAN_SEAFOODS_GROUP

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{operation, natural, condition}

{cost, regulation, environmental}

{product, liability, claim}

{regulation, change, law}

{cost, contract, operation}

{financial, litigation, operation}

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Risks Relating to Our Industry and Its Regulation The repeal of, or adverse amendments to, the American Fisheries Act and other industry regulations would likely impair our profitability. The relatively stable and predictable nature of our harvesting operations and our efficiencies would deteriorate if the Pollock Conservation Cooperative agreement were terminated or adversely changed. Growth in our core pollock harvesting operations and our profitability are limited by the American Fisheries Act. Our business could be materially affected if the community development quota we purchase is significantly reduced or eliminated or offered to us at prices we consider unreasonable. Our at-sea processing operations are subject to regulatory control and political pressure from interest groups that may seek to materially limit our ability to harvest fish. Regulations related to our by-catch could impose substantial costs on our operations and reduce our operational flexibility. Efforts to protect endangered species, such as Stellar sea lions, may significantly restrict our ability to access our primary fisheries and revenues. If we and members of our crew fail to comply with applicable regulations, our vessels may become subject to liens, foreclosure risks and various penalties and our fishing rights could be revoked. If we do not comply with rules regulating non-U.S. citizen ownership and control of fishing vessels, we could lose our eligibility to participate in U.S. fisheries. Risks Relating to Our Business Our products are subject to pricing volatility, and the prices of our pollock roe and pollock surimi products, which have had significant volatility in recent years, may decline or remain at low levels, which would significantly reduce our profitability. If prices at which we purchase catfish remain at high levels or increase, in either case without a proportionate increase in the prices at which we sell our catfish products, our ability to maintain profitability in our catfish processing operations will be adversely affected. A material decline in the population and biomass of pollock, other groundfish and catfish stocks in the fisheries in which we operate could materially and adversely affect our business. Our business is subject to foreign currency fluctuations that could materially adversely affect our financial condition and liquidity. The segments of the seafood industry in which we operate are competitive, and our inability to compete successfully could adversely affect our business, results of operations and financial condition. All of our business activities are subject to a variety of natural risks, which could have a material adverse effect on our business, financial condition or results of operations. Seasonality and variability of our businesses may cause volatility in the market value of our securities and may hinder our ability to make timely payments on our debt. We may be required to pay significant damages or incur significant costs in connection with litigation that is pending against us or with which we are involved. We may incur material costs associated with compliance with environmental regulations. We produce and distribute food products that are susceptible to contamination and, as a result, we face the risk of exposure to product liability claims and damage to our reputation. Our operations are labor intensive, and our failure to attract and retain qualified employees may adversely affect us. Because we distribute a significant amount of our products and receive supplies and other provisions using maritime carriers, certain adverse conditions affecting these carriers and terminals at which they transfer cargo could have a material adverse effect on our business, financial condition or results of operations. Our substantial indebtedness could adversely affect our cash flow and prevent us from fulfilling our financial obligations, including making payment on our outstanding debt.

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1174874--4/11/2006--AMERICAN_SEAFOODS_GROUP_LLC