Icelandair Group hf. - Company Announcement

Icelandair Group hf -Market Making Agreement with Landsbankinn

Icelandair Group hf (ICEAIR) has made an agreement with NBI hf (Landsbankinn)
regarding market making for the issued shares of ICEAIR. The agreement becomes
effective on January 11, 2011 and is of unspecified duration and may be
terminated with one month's notice. The purpose of the renewed agreement is to
improve liquidity and to enhance transparent price formation in the company's
shares on NASDAQ OMX Nordic. 

As a market maker, Landsbankinn is obligated to submit in its proprietary
account daily bid and ask orders for ICEAIR‘s stock, for a minimum of 2,000,000
shares at a price determined by Landsbankinn. The maximum bid/ask spread may
not exceed 1.5% and the deviation from last price paid cannot be greater than
3%. New orders shall be placed within 15 minutes in succession to prior orders
getting filled. If the intraday price of ICEAIR moves more than 10% then
Landsbankinn can double the bid/ask spread for the remainder of the day. Under
the agreement, Landsbankinn is obligated to provide liquidity for up to ISK 80
million in market value daily.