Arion Bank hf. - Company Announcement

Recalling of temporary relief of obligations

With reference to the announcement issued by Arion Bank earlier today and in
consultation with the market maker MP banki, Arion Bank has decided to recall
the temporary permission to relieve MP banki of its obligations on the
secondary market. The obligations of the market maker pursuant to the existing
agreement between the market maker and Arion Bank concerning Arion Bank's
covered bonds have come into effect again. 


For further information please contact Haraldur Gudni Eidsson of Arion Bank's
Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 856
7108.