Íbúðalánasjóður - Company Announcement

CORRECTION: Announcement Regarding the Issuance of HFF Bonds

On December 19th 2008, the Housing Financing Fund (HFF) published a forecast on
lending, issuance of HFF bonds and payments for 2009. The issuance of HFF bonds
was forecasted to be in the range of ISK 8-10 billion during the first quarter
of 2009 but the actual amount issued came to ISK 5.87 billion at nominal value. 
As a result, HFF has decided not to auction more HFF bonds during the first
quarter and part of the forecasted  issuance will be transferred to the second
quarter. Mortgages issued by  HFF during the first quarter were less than
forecasted and the Fund´s liquidity position has been strong. 
A revised forecast for the Fund will be published at the end of week 16 of 2009.