Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Acquisition by Landsbankinn hf. of Own Shares under its Buy-back Programme - end of second acquisition period

On  15 September 2016 Landsbankinn hf. announced the bank would offer to acquire
shares  from shareholders in  accordance with a  buy-back programme during three
specified  acquisition  periods.  The  second  period  was from 31 October to 9
December 2016.

During   the   second  acquisition  period  Landsbankinn  acquired  a  total  of
13.759.612 own shares at a share price of ISK 10.6123, for a total amount of ISK
146.021.130.

Neither  Landsbankinn's CEO  nor any  managing directors  of the bank sold their
shares to the bank during the second repurchase period.

Prior to the second  acquisition period Landsbankinn held 338.071.878 own shares
and  upon its  conclusion owned  351.831.490, or the  equivalent of  1.5% of the
company's issued share capital.

Landsbankinn  has acquired a total of  133.521.872 own shares under the buy-back
programme, or the equivalent of 0.6% of issued share capital in the company, for
a purchase price of ISK 1.391.141.455. Buy-backs under the programme will amount
to  a maximum  of 480 million  shares, or  the equivalent  of 2% of issued share
capital.

Landsbankinn   offers  to  acquire  shares  from  shareholders  during  a  third
acquisition  period, extending from 13 February  2017 up until and including 24
February  2017. Should the above-mentioned maximum be  reached before the end of
the programme, the programme will be terminated.

The  implementation of this buy-back programme complies with Chapter VIII of the
Act on Public Limited Companies, No 2/1995.


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