Lánamál ríkisins - Company Announcement

Market making agreements for RIKH 18 1009 signed

Government Debt Management, on behalf of the Treasury, concluded contractual
agreements today with Íslandsbanki and Landsbankinn concerning market making in
the secondary market for the Treasury bond series RIKH 18 1009. 

  The main provisions of the agreements are as follows:

  -- Market makers pledge to submit daily bid and ask quotes on the NASDAQ OMX
     Iceland Exchange, prior to the opening of the market. Quotes shall equal at
     least 100 m.kr nominal value.
  -- Market makers shall renew accepted bids within 15 minutes of their
     acceptance.
  -- If the total amount of automatically matched transactions of either market
     maker reaches at least 600 m.kr. nominal value in a single business day,
     the party in question is authorised to stop submitting bids until the
     following business day.
  -- The maximum spread between bid and ask quotes shall be 3%.
  -- In the event of serious disturbances in the market, the contracting parties
     are authorised to revoke specific provisions of the agreements temporarily.
  -- The agreements shall take effect on 15 August 2011 and shall have no expiry
     date; however, they may be cancelled with one month's notice.

The market making agreements shall supplant Íslandsbanki´s and Landsbankinn's
unilateral statements on market making for RIKH 18 1009, in accordance with the
press releases dated 28 May 2010 and 21 May 2010. That statement shall become
null and void as soon as market making according to the current agreements
takes effect, as the new agreements provide for greater obligations on the part
of the banks.

Attachments:

08-Market makers RIKH 18 1009.pdf