Icelandair Group hf. - Notice to convene extr.general meeting

Dividend Proposal

Dividend Proposal

The Board of Directors of Icelandair Group hf. (the Company) has proposed to
the 2012 Annual General Meeting (AGM) that the Company will pay a dividend to
its shareholders of 0.16 ISK per share for the operational year 2011. The
dividend will be paid in Icelandic Kronas (ISK) and amounts to ISK 800 million. 

The record date (i. arðsréttindadagur) will be 28 March 2012 if the AGM agrees
to the proposal. Only shareholders registered in the shareholders' registry at
closing on the record date are entitled to receive dividend payments. The
ex-date (i. arðleysisdagur), i.e. when trading exclusive of dividends begins,
will be 26 March, 2012, which is the trading day following the AGM. Payment
date (i. útborgunardagur) of the dividend will be 20 April 2012.