Lánamál ríkisins - Company Announcement

Increased Treasury note facilities for primary dealers

The Central Bank of Iceland has decided to increase its Treasury note
facilities for primary dealers. As of today, the maximum loan in series RIKB 09
0612 and RIKB 10 0317 will incerase by 1 b.kr. in each of the two series, for
each primary dealer; cf. Article 1 of the Terms for Securities Lending to
Primary Dealers, dated September 25, 2008. Eligible collateral for these loans
are Treasury-guaranteed debt instruments and financial undertakings' tied
depisits with the Central Bank, pursuant to Article 7, Items 1(c) of the Rules
on Central Bank Facilities for Financial Undertakings, no. 808/2008.