Nýherji hf. - Financial Statement Release

Nýherji's Results for First Half 2010

Highlights

• The total income in the first half was ISK 100 million, while for the same
  period last year the total loss was ISK 71 million.

• The EBITDA in the second quarter was ISK 123 million, but for the same period
  in 2009 EBITDA was negative by ISK 109 million.

• Product sales in the domestic market in the second quarter were up 30%
  compared with the same quarter last year.

• Positive EBITDA has been achieved in the operations of foreign subsidiaries,
  and the outlook in the second half is good.

• Plans call for agreements being concluded in the near future with the
  company's commercial banks on financial reorganization.



Thordur Sverrisson, CEO:"The company stayed on plan the first half, and the outlook is good for the
second half. Foreign and domestic subsidiaries working in software services
made good profit instead of last year's operational loss. Efforts to lower
operating costs within the group succeeded, and performance therefore improved.
Nýherji has progressed a long way in discussions with the banks on reorganizing
the group's finances, which are expected to conclude in the near future."



Further information

Thordur Sverrisson, CEO Nýherji, Tel. +354 893 3630.



See attachment.

Attachments:

press release - nyherjis results for first half 2010.pdf