Íslandsbanki hf. - Other information disclosed according to the rules of the Exchange

Íslandsbanki changes organisational structure

Íslandsbanki has changed its organisational structure. Effective today, three
income-generating units will serve customers: Personal Banking, Business
Banking, and Corporate Banking. The purpose of the changes is to adapt the
Bank's organisational structure to customers' changed needs and provide them
with better banking services. The changes will also strengthen the Bank's
position with respect to major changes in regulatory provisions, and rapid
technological advancements.

The role of Personal Banking is to provide customers with comprehensive banking
services through digital channels and a modern nationwide branch network.
Sigríður Hrefna Hrafnkelsdóttir is the new Managing Director of Íslandsbanki and
will be head of Personal Banking. Sigríður is a lawyer with an MBA from
Copenhagen Business School. She has worked as director of oil company
Olíuverzlun Íslands' Retail Division.

Business Banking provides service to small and medium-sized enterprises in the
Bank's branches, where business banking experts provide comprehensive financial
services. Ergo, Íslandsbanki's asset based financing unit, is also part of
Business Banking. The director of Business Banking is Una Steinsdóttir.

Corporate Banking provides comprehensive financial services to investors and
large companies, including lending, securities and currency brokerage, corporate
advisory services, private banking services, and sales of hedging instruments.
The director of Corporate Banking is Vilhelm Már Þorsteinsson.

VÍB Asset Management will be transferred to other income-generating units within
the Bank and to its subsidiary, IS Funds. There will be a change in emphasis in
the Bank's research work, but there will still be a Chief Economist who will be
responsible for the Bank's macro research.

The Bank's staff will be reduced by 20 because of the above changes.

Birna Einarsdóttir, Chief Executive Officer:

 "In recent years, we have been simplifying our banking business, and now we are
simplifying our organisational structure and adapting it to a changed
environment. It is healthy for all companies to adapt their organisational
structure, and this entails many opportunities. These changes will help
Íslandsbanki to take advantage of these opportunities and strengthen the
foundations for increased efficiency. We look forward to continued positive
collaboration with our customers, where we will focus on even better service in
a new and simpler organisational structure. "

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.


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