Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : MP bank market maker for covered bond ISLA CB 16

Íslandsbanki hf. has selected MP bank as market maker for the Bank's ISLA CB 16

covered bond.  The market maker is obligated to submit bid and ask offers for at

least ISK 20m nominal value, each day before the market opens.



The market maker is required to renew its bid and ask offers within 15 minutes

of them being accepted. These are valid only within the trading day.  The

maximum spread between the market maker's bid and ask prices can be no higher

than 0.8%.



If trading in one business day reaches ISK 60m nominal value, the market

maker may cease to present bids/offers until the next business day.



The market making is effective as of Tuesday 22 October 2013.



For further information:

Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
+354 440 3187.

Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel:
+354 440 3925.


[HUG#1737235]