Skipti hf. - Company Announcement

Síminn hf. has signed an agreement with Seamobile Europe

Síminn hf., a subsidiary of Skipti hf., has signed an agreement with Seamobile
Europe that includes a payment of EUR 4.5 million from Síminn to Seamobile
Europe, The payment is considerable lower than the International Chamber of
Commerce Arbitration Tribunal in Paris had concluded. In October 2010 the
arbitration tribunal concluded that Síminn was to pay Seamobile Europe
approximately EUR 7.7 million. Seamobile Europe‘s claim was based on an
agreement that Landssími Íslands hf. entered into with the company Geolink in
2003 concerning telecommunications services in international waters. 

In the beginning of 2011 the District Court of Reykjavík confirmed that the
arbitration tribunal decision was enforceable in Iceland. 

The agreement concludes the presumably prolonged and sumptuous dispute between
the two companies.