Icebank - Company Announcement

CORRECTION: Financial restructuring of Sparisjóðabanki Islands hf. (Icebank) continues.

In continuance of the discussions that have been taking place between
Sparisjodabanki Islands (Icebank) and it´s largest creditors regarding
financial restructuring of the bank, a special workgroup has been established
with representatives of the Central bank of Iceland, the foreign creditors of
the bank and the bank itself.  The workgroup has since early February worked on
a proposal regarding the financial reconstruction and the future organization
of the bank. The Central bank of Iceland has granted the bank a postponement of
the margin call until March 28th 2009 so that the workgroup can finish its
work.  A similar consent is being obtained from the foreign creditors. The
Icelandic Financial Supervisory Authority has also granted the bank an one
month extension to increase its capital base to the minimum provided for in the
Act on Financial Undertakings, no. 161/2002.