Íbúðalánasjóður - Company Announcement

Announcement Regarding the Issuance of HFF Bonds

On October 7th 2009, the Housing Financing Fund (HFF) published a revised
forecast on lending, issuance of HFF bonds and payments for 2009. The issuance
of HFF bonds was forecasted to be in the range of ISK 6-8 billion during the
fourth quarter of 2009 but the actual amount issued came to ISK 3.68 billion at
nominal value. As a result, HFF has decided not to auction more HFF bonds
during the fourth quarter. Mortgages issued by HFF during the fourth quarter
were less than forecasted and the Fund´s liquidity position has been strong. 

The Fund´s 2010 forecast on bonds issuance, loans and payments issuance, will
be published on December 21st 2009.