Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Íslandsbanki sells commercial paper

Íslandsbanki  hf.  has  today  sold  5 and  6 month  commercial paper. The total
issuance  in each series cannot exceed ISK 1.5bn in nominal terms. Offers of ISK
560m were  accepted. Nominal amount sold in  series ISLA 15 1015 was ISK 440m at
5.25% (price  97.7059) and sold  in series  ISLA 15 1106 was  ISK 120m at 5.25%
(price 97.4006).

Prior  to the  auction the  total outstanding  commercial paper  amounted to ISK
2.94bn. Total  appetite for the issue amounted  to ISK 680m. Trading is expected
to  commence on 7 May 2015 on Nasdaq Iceland, short names; ISLA 15 1015 and ISLA
15 1106.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
    +354 844 3678.


[HUG#1916943]