Eignarhaldsfélagið Farice ehf. - Company Announcement

Financial restructuring of Eignarhaldsfélagið Farice ehf. and subsidiary Farice hf.

The agreement which Eignarhaldsfélagið Farice ehf. and its creditors entered
into in December 2009 has been extended until next 1 april. The agreement
entails as before that for the duration of the agreement the company has the
opportunity to pay or negotiate due payments. Eignarhaldsfélagið Farice ehf.
has been working on a financial restructuring of the company in cooperation
with the company's creditors and other stakeholders and assisted by
consultants.  Farice hf a subsidiary of Eignarhaldsfélagið Farice ehf has also
made an agreement with its major creditors and other stakeholders to pay or
negotiate due payments until next 1 april.