Landsvirkjun - Company Announcement

Landsvirkjun issues a 7 year bond

Landsvirkjun (The National Power Company) has signed a USD 50 million 7 year
bond in cooperation with Arion Bank. The bond will carry a fixed interest rate
of 4.27% with semi-annual interest payments and a single principal payment at
maturity. Landsvirkjun has an option to repay the bond in part or in full over
the term of the bond. 

The bond is issued under the Company's EMTN (Euro Medium Term Note) program
without a guarantee of collection and will be listed in the Luxembourg Stock
Exchange. Dealer for the transaction is Arion Bank. 

The proceeds of the bond will be used for general financing purposes.

For further information please contact Rafnar Larusson, CFO at +354 515 9000 or
by email: rafnar@lv.is