Eignarhaldsfélagið Farice ehf. - Company Announcement

Financial restructuring of Eignarhaldsfélagið Farice ehf. and its subsidiary Farice hf.

The agreement which has been in place between Eignarhaldsfélagið Farice ehf.
and its creditors has been extended until next 14 May. The agreement entails as
before that the company has the opportunity to pay or negotiate due payments.

Eignarhaldsfélagið Farice ehf. has been working on a financial restructuring of
the company in cooperation with its creditors and other stakeholders and
assisted by consultants.  Farice hf., a subsidiary of Eignarhaldsfélagið Farice
ehf., has also extended its similar agreement with its major creditors until
next 14 May.