Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Landsbankinn issues a EUR 500m benchmark

Landsbankinn hf. has today issued €500 million of senior unsecured bonds,
equivalent to around ISK 65 billion. The bonds have a 4.5 year maturity with a
fixed 1.625% coupon and were priced at terms equivalent to 190 basis point
spread above mid-swaps in euros.

The bonds were sold to institutional investors in Scandinavia, the UK and
Continental Europe. The final order book amounted to around €1.5 billion, three
times oversubscribed, from over 130 investors. The bonds are issued under
Landsbankinn's Medium Term Note (EMTN) Programme and will be listed on the Irish
Stock Exchange on the 15(th) of September.

Landsbankinn will use the proceeds to pre-pay a part of the bank's existing
funding in addition to strengthening the bank's liquidity further.

Joint lead managers on the transaction were: Barclays, Citigroup and Deutsche
bank

Steinþór Pálsson, CEO of Landsbankinn:

"Today's issuance is an enjoyable milestone for Landsbankinn. The bank is
reaching its goal to lower funding cost significantly and at the same time
lengthening the maturity of its market funding.

Strong interest from investors highlights the increased confidence among
international investors in Landsbankinn as well as the positive economic
development that Iceland has experienced. Better terms and increased access to
foreign capital markets enables Landsbankinn to continue to play a leading role
in servicing Icelandic businesses."

Detailed information about Landsbankinn for investors and others stakeholders
are available at: http://corporate.landsbankinn.com/investor-relations/

Further information:

Investor relations:  Hanna Kristin Thoroddsen ; ir@landsbankinn.is ; Tel:
+354 410 7100


[]