Føroya Banki P/F - Company Announcement

- Føroya Banki completes acquisition of Icelandic insurance company

Føroya Banki has received the necessary approvals from the relevant authorities
in conjunction with the bank's acquisition of a 51 pct. stake in the Icelandic
insurance company Vörður Tryggingar hf. (Vörður). 

In continuation hereof the acquisition has been completed today. 

Vörður holds a 30 pct. stake in Vörður Liftryggingar (life insurance company),
which was set up in 2007, and whose principal shareholder is NBI hf.
(Landsbanki). As part of the purchase agreement, Vörður and Føroya Banki can
jointly become a 51 pct. shareholder of Vörður liftryggingar hf. in a joint
venture with Landsbanki. 

Føroya Banki already operates the insurance company Trygd in the Faroe Islands
and views the acquisition of the majority stake in Vörður as a way of
strengthening the group's insurance activities as well as a means of expanding
geographically in the Nordic region. Accordingly, the acquisition is part of
the bank's growth strategy, which includes an expansion if its activities
outside the Faroe Islands, where the bank has a market share in excess of 40
pct. 

The purchase agreement is described in further details in announcement no. 24
dated 5. October 2009. 


Further information, please contact:
Janus Petersen, CEO of Føroya Banki, and chairman of Trygd, tel. (+298) 330 340