Skipti hf. - Company Announcement

SKIPTI SIGNS AN AGREEMENT WITH CREDITORS

Skipti hf. has signed an agreement with its creditors. One part of the
agreement is a payment of ISK 16.7 billion in total on the company's loans. In
2010 Skipti paid ISK 5.1 billion on its loans so in the past months Skipti has
paid a total of ISK 21.8 billion on its loans. From the collapse of the
Icelandic economy, Skipti has paid a total of ISK 27 billion on its loans. The
payment of ISK 16.7 billion on the company's loans at this time will reduce
Skipti's syndicated loan agreement from ISK 41,4 billion to ISK 24,7 billion.
No debts are being written off, and payments on all of Skipti's loans remain
current. 

Negotiations have been in progress for some time on Skipti's paying down its
loans faster than provided for in the original loan agreements. Skipti's
liquidity position has been very strong; at the end of 2010 the company held
approximately ISK 20.0 billion in cash. 

Following the economic collapse in Iceland, Skipti's debts increased
significantly, as in the case of most other Icelandic companies. The cash that
Skipti is paying now was mostly obtained through the sale of the company's
foreign assets.