Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Today Arion Bank completed an offering of 12-, 6- and 5-month commercial
papers. Offers totaling ISK 7,000 million were received and offers worth ISK
2.680 million were accepted. 

The nominal amount sold in the 5-month series was 1,480 m at 5.75% flat rates.

The nominal amount sold in the 6-month series was 1,200 m at 5.75% flat rates.

All offers in the 12-month series were declined.

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
in the following week. 

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