Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Íslandsbanki sells commercial paper

Íslandsbanki  hf. has today offered 3 and 6 month commercial paper to investors.
Offers  totaling ISK   7.900 million were  received and  offers worth ISK 1.100
million were accepted.

The nominal amount sold in the 3-month series was 540m at 5.75% simple rate.

The nominal amount sold in the 6-month series was 560m at 5.80% simple rate.

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

For further information:

  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:
    +354 440 3187.
  * Public Relations - Edda Hermannsdóttir, pr@islandsbanki.is and tel:
    +354 440 4005.


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