Íbúðalánasjóður - Financial Statement Release

The Housing Financing Fund's Condensed Interim Accounts, January - June 2009

The Condensed Interim Accounts for the period January 1st to June 30th, 2009
has been approved and signed by the Board of Directors of the Housing Financing
Fund (HFF) at it´s meeting today  August 31st 2009. The accounts were prepared
in accordance with International Financial Reporting Standards (IFRS) for
interim accounts, IAS 34. 

According to the income statement, the net profit of the Fund amounted to ISK
463 million for six months ending June 30th, 2009. Equity, according to the
balance sheet, amounted to ISK 13,748 million at the end of the period. The
capital ratio of the Fund, calculated according to stipulations of regulation
on the Housing Financing Fund No. 544/2004, was 4.3%. The calculation of the
ratio is equivalent to the calculation of the capital ratio of other financial
institutions. The long-term goal of the Fund is to maintain the ratio above
5.0%. 

As stated in note no. 8 the Fund has deposits at SPRON and Straumur - Burðarás
fjárfestingarbanki hf. There is a controversy concerning definition of these
deposits. If the Fund´s claims will be classified as general claims the Fund´s
loss could amount to around ISK 3.5 billion based on a schedule from the
companies' resolution committee for reimbursement ratio of uninsured claims. 

For further information, please contact Guðmundur Bjarnason, Ívar Ragnarsson or
Ásta H. Bjarnadóttir at (+354) 569 6900.

Attachments:

íls_english_ifrs_30 6 09.pdf

pressrelease interim accounts 20009.docx