Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Today Arion Bank completed an offering of 12-, 6- and 5-month commercial
papers. Offers totaling ISK 4,120 million were received and offers worth ISK
2,760 million were accepted. 

The 5-month series attracted bids totaling ISK 1,620 million at a flat rate of
5.58% - 5.90%. The nominal amount sold in the 5-month series was ISK 1,420 m at
5.70% flat rates. 

The 6-month series attracted bids totaling ISK 1,640 million at a flat rate of
5.63% - 5.90%. The nominal amount sold in the 6-month series was ISK 780 m at
5.70% flat rates. 

The 12-month series attracted bids totaling ISK 860 million at a flat rate of
5.90% - 6.40%. The nominal amount sold in the 12-month series was ISK 560 m at
5.98% flat rates. 

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
next week. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 856
7108.