Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Today Arion Bank completed an offering of 12-, 6- and 5-month commercial
papers. Offers totaling ISK 2,920 million were received and offers worth ISK
1.840 million were accepted. 

The nominal amount sold in the 5-month series was 500 m at 5.75% flat rates.

The nominal amount sold in the 6-month series was 580 m at 5.75% flat rates.

The nominal amount sold in the 12-month series was 760 m at 6.00% flat rates.

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
in the following week. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.