Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Íslandsbanki sells commercial paper

Íslandsbanki hf. has today offered 6 and 12 month commercial paper to investors.
Offers  totaling ISK  3,700 million were  received and  offers worth  ISK 1,700
million were accepted.

The nominal amount sold in the 6-month series was 1,220m at 5.60% simple rate.

The nominal amount sold in the 12-month series was 480m at 5.89% simple rate.

The  commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
15 December.

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


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