Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Last Friday Arion Bank completed an offering of 6 and 5 month commercial
papers. Offers totalling ISK 2,040 million were received and offers worth ISK
1,260 million were accepted. 

Nominal amount sold in 5 months series was 320 m at 6.60% flat rates.

Nominal amount sold in 6 months series was 940 m at 6.59% flat rates.

The commercial papers are scheduled to be admitted to trading on NASDAQ OMX
Iceland at the end of the month. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.