Íslandsbanki hf. - Company Announcement

Islandsbanki hf. : 95% stake delivered to the Central Bank of Iceland and the Icelandic Government

Glitnir has signed an agreement to deliver the estate's stability contribution
to the Central Bank of Iceland and the Icelandic Government. A portion of the
stability contribution is Glitnir's 95% stake in Íslandsbanki. The Government
previously owned a 5% share in Íslandsbanki; therefore, the Bank will now be
wholly State-owned. This change is subject to the approval of the
Competition Authority, and the transfer of ownership will not take place until
such approval has been obtained.

As has been stated previously, the change in ownership will not affect the day-
to-day operations of Íslandsbanki, and the Bank's customers and employees will
not notice any changes as a result of the transaction.


For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is,  tel
    +354 440 3187.
  * Media Relations - Edda Hermannsdottir, edda.hermannsdottir@islandsbanki.is
    and tel: +354 440 4005.


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