Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Yesterday Arion Bank completed an offering of 12-, 6- and 5-month commercial
papers. Offers totalling ISK 3,520 million were received and offers worth ISK
660 million were accepted. 

The nominal amount sold in the 5-month series was 500 m at 6.50% flat rates.

The nominal amount sold in the 6-month series was 160 m at 6.48% flat rates.

All offers in the 12-month series were declined.

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. +354 444
7108.