Íbúðalánasjóður - Company Announcement

Possible HFF Bond´s Issuance

On March 4th, 2010, the Board of the Housing Financing Fund (HFF) agreed
pursuant to law no. 44/1998, article 9, clause 3, that HFF would purchase
mortgage portfolios owned by the companies Droma hf. (previously SPRON) and
Frjalsi Fjarfestingabankinn hf. The purcahase is provisional to utilisation of
preemptive rights of the third party. The purchase amount was ISK 16 billion.
As a result of the purchase, it is expected that HFF´s  reviewed forecast on
HFF- bond issuance will lead to and increase in issuance by up to ISK 8 billion
at nominal value in 2010. HFF´s reviewed forecasts will be released before
March 15th, 2010.