Íbúðalánasjóður - Company Announcement

The Housing Financing fund decides to enter into negotiations with the highest bidders for Klettur Property Management ehf.

As announced last November 5th the Board of Directors of The Housing Financing
Fund decided that Klettur Property Management ehf. would be sold following a
sales procedure that would focus on maximising the value of the property in
accordance with the criteria underlying its establishment. This procedure
resulted in the beginning of May in The Housing Financing Fund receiving three
binding offers to buy Klettur Property Management ehf. 

The Board of Directors of The Housing Financing Fund decided in its meeting
this morning, May 18th 2016, to enter into negotiations with the highest
bidders. If these negotiations are successful an agreement to sell Klettur
Property Management ehf. is expected to be signed on May 27th 2016.