Íbúðalánasjóður - Company Announcement

Temporary exemption revoked

With reference to the press release issued by Housing Financing Fund (HFF)
earlier today, and upon consultation with primary dealers, HFF has decided to
revoke the temporary exemption from secondary market obligations previously
granted to primary dealers. Primary dealers' obligations according to Article 3
of the current agreement between them and the HFF shall be reinstated as of
11:25 hrs. today. 



Further information can be obtained from Sigurður Jón Björnsson CFO, at tel.
+354 569 6990.