Arion Bank hf. - Company Announcement

Arion Bank completes covered bond offering

Arion Bank completed an offering of a new series of non-indexed covered bonds
yesterday, Wednesday 26th of August.  The bonds are 7-year instruments with a
fixed 6.50% coupon. 

Offers totalling ISK 4,300 million were received and offers worth ISK 4,200
million were accepted at a yield of 7.0%. 

The bonds are scheduled to be admitted to trading on NASDAQ Iceland at the
beginning of September. 

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