Exista hf. - Total number of voting rights and capital

- Changes in share capital of Exista

In accordance with the authorisation of the Exista shareholders' meeting held
on 30 October 2008, the Board of Directors has decided to increase share
capital in the Company by 50 billion shares, as is stated in the Stock Exchange
notice of 4 December, in exchange for 1 billion shares in Kvakkur ehf. Total
share capital after the transaction is 64,174,767,632 shares. 

This transaction entails a cash payment of ISK 1.0 billion made to Exista by
Ágúst and Lýdur Gudmundsson, former owners of Kvakkur ehf. 

Following the transaction, the stake held by BBR ehf. and Bakkabraedur Holding
B.V., both owned by Ágúst and Lýdur Gudmundsson, amounts to 88% of total share
capital in Exista. BBR ehf. will therefore submit a takeover bid to other
shareholders in accordance with Chapter X of the Act on Securities
Transactions, no. 108/2007. A bid summary setting forth the terms of the offer
will be publicised within four weeks. 

Proposed write-down of share capital 
The Board of Exista hf. will recommend to an extraordinary shareholders'
meeting, which will be held later this month, that the Company's share capital
be written down by as much as 98%. The write-down of share capital means that
the total number of Company shares will decrease from 64,174,767,632, each with
a nominal value of ISK 1, to approximately 1,283,495,353 shares, each with a
nominal value of ISK 1. 

Proposed rights issue
Furthermore, the Board intends to propose to the shareholders' meeting a share
capital increase in the form of a rights issue for shareholders next year. The
Board's aim with the rights issue would be to give shareholders the option of
participation in the rebuilding of Exista if the current discussions with
financial institutions yield results that safeguard the future of the Company.
The price of shares in the rights issue would correspond to the price for the
above-described transactions, or ISK 1 per share with account given to the
write-down of share capital. In view of the current uncertainty surrounding
Exista's future, the Board is of the opinion that it would be imprudent to
engage in a public share capital offering before the Company's position
vis-à-vis banks and creditors has been clarified further. 



Enquiries:

Exista Group Communications
Sigurdur Nordal
Managing Director
Telephone: +354 550-8620
ir@exista.com

Attachments:

exista articles of association december 2008.pdf