Lánamál ríkisins - Company Announcement

The Central Bank repurchases Treasury securities

In connection with Parliamentary handling of the Act on the Treatment of
Króna-Denominated Assets Subject to Special Restrictions which entered into
force Yesterday, the Central Bank wishes to emphasise the following. The Bank
is currently preparing a foreign currency auction for owners of offshore
krónur, and the terms and conditions for the auction, as well as its date, will
be publicised very soon. Those owners of offshore krónur that own Treasury
securities and securities bearing a State guarantee will be able to deliver
them to the Central Bank as payment for foreign currency in the auction without
previously selling the securities in the market. The repurchase prices of the
securities will be published during the prelude to the auction and will be
determined in accordance with their market price.