Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Second Repurchase Period for Landsbankinn's Own Shares

As  described  in  Landsbankinn's  news  announcement  on 15 September 2016, the
bank's  Board of Directors has decided  to exercise an authorisation to purchase
the  bank's own shares,  which was approved  at the bank's  AGM on 14 April this
year.  Buy-backs under the programme,  effected during three repurchase periods,
will  total a maximum of  480 million shares, or the  equivalent of 2% of issued
share capital.



On  30 September 2016 Landsbankinn announced the  results of its share buy-backs
during  the  first  repurchase  period,  from  19 September  2016 up  until  and
including 30 September 2016.



The second period will extend from 31 October 2016 to 9 December 2016.



Those  shareholders who  decide to  avail themselves  of Landsbankinn's offer to
purchase  their shares during the second  repurchase period must notify the bank
thereof,  using  a  form  for  this  purpose  accessible  on the bank's website.
Instructions are also provided on the bank's website for shareholders wishing to
sell  their shares during the second repurchase  period. No letters will be sent
to  individual  shareholders  regarding  this  second  period of bank's buy-back
programme.



Notifications  will be processed in the order  in which they are received by the
bank until the above-mentioned maximum (480 million shares) is reached. Once the
maximum is reached no further notifications will be processed.



Based  on Landsbankinn's interim results for  the first nine months of 2016, the
equity  held  by  the  bank's  shareholders  is  ISK  251,106,010,127 and  their
outstanding   shares   are   23,661,764,751 .  In  accordance  with  the  above,
Landsbankinn  will offer to purchase each share at a price of ISK 10.6123 during
the second repurchase period.



Following  the  conclusion  of  the  second  repurchase period Landsbankinn will
disclose  the total  number of  shares purchased  and whether  the bank's CEO or
managing directors have sold shares in the bank.



A  third repurchase period is scheduled extending from 13 February 2017 up until
and including 24 February 2017.



For  further  information  contact  Rúnar  Pálmason,  Landsbankinn's Information
Officer, runar.palmason@landsbankinn.is.


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