Arion Bank hf. - Company Announcement

Arion Bank hf. completes bond offering

On Friday 29 June Arion Bank hf. completed its second non-indexed fixed rate
covered bond offering, issuing ISK 1.2 billion worth of bonds in the series
Arion CB 15. The size of the series after the increase is ISK 2.25 billion. 

The series is expected to be admitted for trading on NASDAQ OMX Iceland in
July. Further information regarding the listing will be available at a later
date. The bonds bear 6.50% interest and mature in 2015. The yield is 6.45%. 

For further information please contact Haraldur Gudni Eidsson, Arion Bank's
Corporate Communications, tel: +354 856 7108, haraldur.eidsson@arionbanki.is.