Íbúðalánasjóður - Company Announcement

The Housing Financing Fund - Auction 2, 2008

The Housing Financing Fund (HFF) has decided to hold an auction on HFF150914,
HFF50224, HFF150644 and HFF150644 bonds. HFF aims to accept bids for up to ISK
7.000.000.000 at nominal value.  HFF reserves the right to increase or reduce
the size of the bond issue, and accept or reject all or none of the bids.
According to a primary dealer agreement between the HFF on the one hand and
Kaupthing bank hf., Glitnir Bank hf., Landsbanki Íslands hf., Straumur-
Burdaras Investment Bank hf., MP Investment Bank and Saga Capital Investment
Bank on the other, only the primary dealers are authorized to participate in
HFF bond auctions. 

Bids are hereby requested for the primary sale of HFF bonds, issued by HFF in
accordance to the following specifications. 

Issued amount:	8.000.000.000, - (eight billion ISK)  
Minimum bid:	See primary dealer agreement issued 14/6/2007
Maturity:	         See prospectus issued 2004/06/28 and 2004/11/12
Date of issue:	See prospectus issued 2004/06/28 and 2004/11/12
Coupon dates:	See prospectus issued 2004/06/28 and 2004/11/12
Nominal interest rate:Fixed at 3.75%
Base index:	See prospectus issued 2004/06/28 and 2004/11/12
Units:	         Electronic bonds for each category, with one unit equalling ISK
1 
Commission:	HFF pays a commission of 0.15%
Price:	         Bids should include the price, both with and without a
commission, the bided amount, and the yield. 
Auction method:	 “American Auction Method”, where each bidder seeks his/her
price. The auction can therefore result in more than one price. 
Settlement of sales:Friday June 27th, 2008.

Bids shall be submitted in a sealed envelope before 4:00 p.m. on Friday June
20th 2008, addressed to: 
                   The Housing Financing Fund, 
                   c/o Finance Division
                   Borgartun 21, 
                   105 Reykjavik, Iceland

Bids may also be submitted via e-mail to fjarstyring@ils.is or fax (+354)
569-6890 on the bidding day, provided the staff at HFF´s Finance Division has
been informed beforehand of the bid specifications by telephone (+354)
569-6990. 

All bidders will be notified of the results before 09:30 are on Monday June
23rd, 2008