Icelandair Group hf. - Company Announcement

Financial restructuring completed

Icelandair Group hf. financial restructuring completed

Icelandair Group hf. announced on 14 and 15 June 2010 that the Enterprise
Investment Fund (EIF) and the Pension Fund of Commerce (PFC) had entered into a
binding agreement with the Company to the effect that the two funds would
invest in Icelandair Group for ISK 4 billion at a share price of 2.5. In the
agreement EIF undertook to contribute ISK 3 billion, thereby acquiring 1.2
billion new shares in the Company. The PFC undertook to contribute ISK 1
billion, thereby acquiring 400 million new shares in the Company. 

The agreements were concluded with the following conditions:
+	Positive results of Icelandair Group due diligence
+	Exemption of the EIF by the Financial Supervisory Authority (FME) from an    
         obligatory take-over of the Company 
+	Achievement by Icelandair Group hf. of a minimum of ISK one billion in market
         value of new shares from other investors 

All of the above conditions have been met, and investors have subscribed to a
total of ISK 5.5 billion at market value in new share capital, which
corresponds to 2.2 billion new shares in Icelandair Group hf. 

The agreement assumes the conversion by Icelandair's largest creditors of debts
in the amount of ISK 3.6 billion into shares based on a share price of 5 per
share, which corresponds to a subscription to 720 million new shares.  The
total increase in share capital will thus amount to 2.92 million new shares at
nominal value. 

Icelandair Group hf. plans furthermore to raise approximately ISK 2.5 billion
in additional share capital. The timing and structure of that offering will be
disclosed later. 

The financial restructuring of the Company will reduce its debt by over ISK 10
billion through the transfer and sale of certain assets which are not a part of
the Company's core business, as announced in a notice to the Nasdaq OMX Iceland
last 25 March.
For further information, please contact:
Björgólfur Jóhannsson CEO, Icelandair Group, tel. +354-896-1455
Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801

Attachments:

12_08-10_fjarhagsleg-endurskipulagning_ens.pdf