Arion Bank hf. - Other information disclosed according to the rules of the Exchange

Arion Bank buys back $65 million of Notes

On 7 March Arion Bank bought back $65,000,000 of Notes in addition to accrued
interest. The Notes amounted to $747,481,000 when they were issued in January
2016. The Notes are held by Kaupthing, and their issue formed a part of the
arrangements for the liberalization of capital controls in Iceland.  The
outstanding nominal amount after buyback is $100,000,000.  The buyback is part
of Arion Bank’s liquidity and debt management strategy. 

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