Landsnet hf. - Company Announcement

Refinancing of debt between Landsnet and Landsvirkjun

Landsnet and Landsvirkjun have reached an agreement on the refinancing of debt
between the companies. By this agreement Landsnet has bought back all of its
outstanding bonds issued in 2005 and which were owned by Landsvirkjun. 

Landsnets buy-back was in part paid in cash and in part by a new loan agreement
between the companies in USD and maturing in 2020. 

Islandsbanki acted as a consultant to Landsnet and Landsvirkjun for the
buy-back and for the new loan agreement. 

Reykjavik, December 29, 2016

For further information please contact Guðlaug Sigurðardóttir CFO , phone nr.
+354 563 9300 or by email: gudlaugs@landsnet.is