Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Offering of covered bonds issued by Landsbankinn

Landsbankinn  will offer covered bonds for sale  via auction held on Tuesday 24
May  at 15:00. Two series already  issued on Nasdaq Iceland  will be offered for
sale, inflation-linked series LBANK CBI 22 and non-indexed series LBANK CB 19.

In  connection with the auction, a bond  exchange offering will take place where
holders  of the non-indexed series LBANK CB  16 can sell the bonds in the series
against  bonds bought in the above-mentioned auction.  The price of the bonds in
the  series LBANK  CB 16 is  predefined and  is decided  by the yield 5.94% that
equals the clean price 100.0 (dirty price is 106.1425).

Landsbankinn  Capital Markets will manage  the auction. For further information,
please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.


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