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 3,460 million were received and offers worth ISK
1,700 million were accepted. 

The nominal amount sold in the 5-month series was 1,200 m at 6.45% flat rates.

The nominal amount sold in the 6-month series was 360 m at 6.49% flat rates.

The nominal amount sold in the 12-month series was 140 m at 6.84% flat rates.

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland
next week. 

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