Orkuveita Reykjavíkur - Company Announcement

Progress Report on Orkuveita Reykjavikur's Action Plan Q1 2012

Reykjavik, 2012-06-28 08:00 CEST (GLOBE NEWSWIRE) -- An agreement between
Orkuveita Reykjavikur (OR) and its owners, tackling the company‘s financial
situation (The Plan), was announced March 29th 2011. It contains various
measures with the overall goal to improve OR's cash flow by ISK 50 billion
until year end 2016. 

The Plan's progress as of Q1 2012 surpasses target figures.

The result in Q1 2012 amounted to ISK 2.1 bn and was ISK 322 above schedule.
External factors also proved more favorable than anticipated, or by ISK 34
million. Thereby, the results for Q1 2012 surpassed The Plan by ISK 365 million
and the overall results 2011 through Q1 2012 is ISK 1,563 million beyond
schedule. 

The best results are in investments cuts  in the utility systems. In Q1 2012
sales of assets did not reach OR's goal. OR's shares in HS Veitur are currently
in a public sales process. 

A progress report on The Plan Q1 2012 is attached.


         For further information:
         Bjarni Bjarnason
         CEO
         + 354 516 7707

Attachments:

Progress report_OR 2012 Q1_EN.pdf