Icelandair Group hf. - Company Announcement

Icelandair Group hf -Market Making Agreement with Saga Investment Bank

Icelandair Group hf (ICEAIR) has made an agreement with Saga Investment Bank
regarding market making for the issued shares of ICEAIR. The agreement becomes
effective on January 10, 2011 and is of unspecified duration and may be
terminated with one month's notice. The purpose of the renewed agreement is to
improve liquidity and to enhance transparent price formation in the company's
shares on NASDAQ OMX Nordic. 

As a market maker, Saga Investment Bank is obligated to submit in its
proprietary account daily bid and ask orders for ICEAIR‘s stock, for a minimum
of 1,000,000 shares at a price determined by Saga Investment Bank. The maximum
bid/ask spread may not exceed 1.5% and the deviation from last price paid
cannot be greater than 3.0%. New orders shall be placed within 15 minutes in
succession to prior orders getting filled. Under the agreement, Saga
Fjárfestingarbanki is obligated to provide liquidity for up to ISK 15,000,000
of nominal value daily.