Lánamál ríkisins - Company Announcement

Iceland repays loan

The Central Bank of Iceland, on behalf of the Republic of Iceland ("Iceland"),
has reached an agreement to repay part of Iceland's outstanding syndicated loan
arranged by Bayerische Landesbank with a final maturity in September 2011.
Iceland has repaid a nominal amount of EURO 225,000,000 of the EURO 300,000,000
outstanding. This is done as part of sound debt and liquidity management for
the Republic of Iceland.