Icelandair Group hf. - Company Announcement

Market Making Agreement with MP Banki

Icelandair Group hf (ICEAIR) has made an agreement with MP Banki regarding
market making for the issued shares of ICEAIR. The agreement becomes effective
on 6 September, 2011 and is of unspecified duration and may be terminated with
one month's notice. The purpose of the renewed agreement is to improve
liquidity and to enhance transparent price formation in the company's shares on
NASDAQ OMX Nordic. 

As a market maker, MP Banki is obligated to submit in its proprietary account
daily bid and ask orders for ICEAIR‘s stock, for a minimum of 2,000,000 shares
at a price determined by MP Banki. The maximum bid/ask spread may not exceed
1.5% and the deviation from last price paid cannot be greater than 3%. If the
intraday price of ICEAIR moves more than 10% then MP Banki can double the
bid/ask spread for the remainder of the day. New orders shall be placed within
10 minutes in succession to prior orders getting filled. Under the agreement,
MP Banki is obligated to provide liquidity for up to ISK 80 million in market
value daily.