Lánamál ríkisins - Company Announcement

Republic of Iceland buys back its own bonds denominated in USD

During the first quarter of 2015, the Central Bank of Iceland (the “Bank”),
which manages borrowing on behalf of the Treasury, purchased for cancellation
nominal value of USD 97,465,000 in the bond series “ICELAND 4.875% 06/16/16”
(ISIN USX3446PDH48/US451029AD49). 

The issued volume totals USD 1,000,000,000; therefore, the Bank has bought
9.7465% of the Treasury's outstanding debt in the above-specified bond series,
which matures on 16 June 2016. 

The bonds were bought in a series of repurchases as an element in the
Treasury's liquidity and debt management strategy. 

Further information can be obtained from Esther Finnbogadottir at the Ministry
of Finance, at tel: +354 545 9200