Íslandsbanki hf. - Company Announcement

Islandsbanki hf.: Total result of exchange auction

In connection with the covered bond auction on 11 November, a bond exchange
offering took place where holders of the CPI-linked ISLA CBI 16 could sell the
bonds in the series against bonds bought in the auction. The total nominal of
the exchange was ISK 1,400m which is an additional ISK 120m from the previous
announcement after the auction.

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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