Arion Bank hf. - Company Announcement

Arion Bank completes commercial papers offering

Yesterday Arion Bank completed an offering of 12-, 6- and 5-month commercial
papers. Offers totalling ISK 3,900 million were received and offers worth ISK
2,840 million were accepted. 

The nominal amount sold in the 5-month series was 820 m at 6.55% flat rates.

The nominal amount sold in the 6-month series was 1,320 m at 6.59% flat rates

The nominal amount sold in the 12-month series was 700 m at 6,90% flat rates

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
at the end of the month. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444
7108.