Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : Issuance of 3 and 6 month commercial paper

Íslandsbanki hf. has today sold 3 and 6 month commercial paper. The total
issuance in each series cannot exceed ISK 1.5bn in nominal terms. The auction
was structured so that bidders submitted bids at predetermined rates (prices).
The 3 month commercial paper was sold at a simple rate of 6.10% (price:
98.4650) and the 6 month commercial paper was sold at a simple rate of 6.30%
(price: 96.8804).

Total bids for a nominal value of ISK 920m were accepted for the 3 month
commercial paper and ISK 700m for the 6 month commercial paper.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 15 May 2013 on the Nasdaq OMX Iceland.


For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
    +354 440 3187.
  * Media Relations - Guðný Helga Herbertsdóttir,
    gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 440 3678 / mob:
    +354 844 3678.

[HUG#1700549]