Landsbankinn hf. - Company Announcement

Landsbankinn hf. : Acquisition by Landsbankinn hf. of Own Shares under its Buy-back Programme - Acquisitions during the first repurchase period

On  15 September 2016 Landsbankinn hf. announced the bank would offer to acquire
shares  from shareholders in  accordance with a  buy-back programme during three
specified  acquisition periods.  The first  period was  19 September 2016 to 30
September 2016.

During   the   first   acquisition  period  Landsbankinn  acquired  a  total  of
119.762.260 own  shares at a share  price of ISK 10.3966, for  a total amount of
ISK 1.245.120.325.

Neither  Landsbankinn's CEO  nor any  managing directors  of the bank sold their
shares to the bank during the first repurchase period.

Prior  to the first acquisition  period Landsbankinn held 218.309.618 own shares
and  upon its  conclusion owned  338.071.878, or the  equivalent of  1.4% of the
company's issued share capital.

Landsbankinn  has acquired a total of  119.762.260 own shares under the buy-back
programme, or the equivalent of 0.5% of issued share capital in the company, for
a purchase price of ISK 1.245.120.325. Buy-backs under the programme will amount
to  a maximum  of 480 million  shares, or  the equivalent  of 2% of issued share
capital.

Landsbankinn  offers  to  acquire  shares  from  shareholders  during  a  second
acquisition  period, extending  from 31 October  2016 up until  and including 9
December  2016, and a third acquisition period, extending from 13 February 2017
up  until and including 24 February  2017. Should the above-mentioned maximum be
reached before the end of the programme, the programme will be terminated.

The  implementation of this buy-back programme complies with Chapter VIII of the
Act on Public Limited Companies, No 2/1995.

For further information contact:

Hanna Kristín Thoroddsen, Investor Relations, ir@landsbankinn.is, tel:
+354  4107310


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