Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Correction of final terms for covered bonds ISLA CBI 19 and ISLA CBI 24

In the final terms published 7 March 2011 for covered bonds ISLA CBI 19 and ISLA
CBI 24, section B of the final terms for ISLA CBI 19 was published in the final
terms of ISLA CBI 24 and vice versa. Please find attached the correct final
terms for both covered bonds ISLA CBI 19 and ISLA CBI 24.

In addition, in section 17 xiii regarding the issuances' base index, the decimal
places were increased from one to two, e.g. from 387.9 to 387.88.

For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
    +354 440 3187.
  * Media Relations - Guðný Helga
    Herbertsdóttir,gudny.helga.herbertsdottir@islandsbanki.is and tel:
    +354 440 3678.


[HUG#1593719]

Liitteet:

ISLA CBI 24 Final Terms.pdf

ISLA CBI 19 Final Terms.pdf