Skipti hf. - Company Announcement

SKIPTI WITH ISK 19 BILLION PAYMENT ON LOANS

Skipti hf. has reached an agreement on all major terms with its creditors on a
payment of ISK 19 billion in total on the company's loans and documentation is
in its final stages. The payment of ISK 19 billion on the company's loans at
this time will reduce Skipti's syndicated loan agreement from ISK 41,7 billion
to ISK 22,7 billion. No debts are being written off, and payments on all of
Skipti's loans remain current. 

Negotiations have been in progress for some time on Skipti's paying down  its
loans faster than provided for in the original loan agreements. Skipti's
liquidity position has been very strong; at the end of June the company held
approximately ISK 16.6 billion in cash and in July the sale of the Nordic
information technology company Sirius IT was finalised at a significant profit. 

Following the economic collapse in Iceland, Skipti's debts increased
significantly, as in the case of most other Icelandic companies. The cash that
Skipti is paying now was obtained through the sale of the company's foreign
assets, and also by the use of concentrated cost containment measures. 

For more information, contact: 
Brynjólfur Bjarnason, CEO of Skipti, tel. +354-550-6002
Pétur Th. Óskarsson, Head of Communication, tel. +354-863-6075