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 2,940 million were received and offers worth ISK
1,040 million were accepted. 

The 5-month series attracted bids totaling ISK 960 million at a flat rate of
5.30% - 5.55%. Bids amounting to ISK 320 m at 5.37% flat rates were accepted. 

The 6-month series attracted ISK 1,380 million in total at a flat rate of 5.30%
- 5.55%. Bids amounting to ISK 320 m at 5.37% flat rates were accepted. 

The 12-month series attracted ISK 600 million in total at a flat rate of 5.61%
- 6.70%. Bids amounting to ISK 400 m at 5.68% flat rates were accepted. 

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.