Landsvirkjun - Company Announcement

Landsvirkjun bond issue oversubscribed

Landsvirkjun has made an agreement for an increase of its recent bond issue,
from USD 100 million to USD 150 million. The Deutsche Bank arranges the
increase of the issue and the buyers are foreign investors. There are no other
changes to the issue, the term is five years and the bonds bear 6.5% fixed
interest. 

Hörður Arnarson, Landsvirkjun's CEO says that this increase is very positive
for the company: 

“This increase is very positive for Landsvirkjun and reflects the good
reception received by the initial bond issue. It is very positive to get more
investors involved and it is clear that Landsvirkjun has succeeded in building
the trust demonstrated by this oversubscription”. 

The company now has at its disposal USD 500 million to meet its commitments in
the coming years.  The company is now close to completing its long term
recapitalisation based on current operations. 

Further information is provided by Ragna Sara Jónsdóttir, Head of Corporate
Communications, sara@lv.is and by Kristján Gunnarsson, Treasurer,
kristjan@lv.is. 

27 September 2010.