Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Íslandsbanki sells commercial paper

Íslandsbanki hf. has today offered 6 and 12 month commercial paper to investors.
Offers  totaling ISK  5,160 million were  received and  offers worth  ISK 1,240
million were accepted.

The nominal amount sold in the 6-month series was 840m at 5.65% simple rate.

The nominal amount sold in the 12-month series was 400m at 5.93% simple rate.

The  commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
24 November.

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


[]