Orkuveita Reykjavíkur - Company Announcement

Orkuveita Reykjavikur Reaches Agreement with Dexia Crédit Local

Reykjavik, 2012-05-24 17:15 CEST (GLOBE NEWSWIRE) -- Orkuveita Reykjavikur (OR
- Reykjavik Energy) and the European Dexia Crédit Local have reached an
agreement on changes of repayment of loans, including postponement of 2013
amortization. The delayed installments amount to EUR 33 million. The agreement,
which is subject to the approval of OR's owners, considerably strengthens the
financing plan OR and its owners approved in March 2011 and has guided the
Company's operations since. 

As published by OR, the company is especially laden by repayments in year 2013,
which the agreement significantly relieves. The financing plan of March 2011
assumes that OR's accumulated cash flow improves by ISK 50 billion in years
2011 through 2016. 

Bjarni Bjarnason, CEO of Orkuveita Reykjavikur:

We have achieved much by last year's reformation of OR's operations. The
actions proposed in the financing plan are all on schedule and I especially
praise our staff for their resourcefulness and resilience in implementing our
plan. The agreement with Dexia signals that these achievements have been duly
noted and are appreciated in the financial market. The agreement strengthens
further execution of the plan.  This is important since external factors like
currency exchange rates and the price of aluminum have not developed favorably. 




         Bjarni Bjarnason, CEO, +354 516 7707