Icelandair Group hf. - Company Announcement

Íslandsbanki hf. intends to reduce its shareholding in Icelandair Group hf

Íslandsbanki hf. has decided to sell, through private offering, 5% share in
Icelandair Group hf. Present shareholding of Íslandbanki is 19.99%. The final
amount of shares to be sold will be decided when the results of investors bids
are in. 

Íslandsbanki Markets will supervise the sale of the shares, which will be done
through private offering in accordance with Article 50, first paragraph c. of
the Securities Act  no. 108/2007.The offering will take place on June 21 and
June 22.