Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Íslandsbanki  hf. has today sold 6 month commercial paper. The total issuance in
the  series cannot exceed ISK 1.5bn in  nominal terms. Offers of ISK 180 million
were accepted at a simple rate of 5.25% (price: 97.3730).

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
4.5bn. Total  appetite for the  issue amounted to  ISK 400m, of which 45% of the
offers were accepted. Trading is expected to commence on 20 March 2015 on Nasdaq
Iceland.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
    +354 844 3678.


[HUG#1903500]