Orkuveita Reykjavíkur - Company Announcement

Statement from Orkuveita Reykjavikur

Reykjavik, 2011-12-21 16:15 CET (GLOBE NEWSWIRE) -- Orkuveita Reykjavikur has
been required by HS Orka to be a party to HS Orka's arbitration regarding a
dispute with Nordural, as stated in the following release by HS Orka today: 

On 16 December 2011, HS Orka hf. ("HS") referred to arbitration a dispute
regarding the proper interpretation of a power purchase agreement made by HS
and Orkuveita Reykjavikur ("OR") with Nordural Grundartangi ehf. ("Nordural")
in 2005.  The dispute relates to the quantities of power Nordural is required
to purchase from HS under the power purchase agreement for use at the
Grundartangi smelter, as compared to the power Nordural may obtain from other
sources.  Although there is no dispute between HS and OR, HS was required to
join OR as a party to the arbitration because OR is a party to the power
purchase agreement.  The arbitration will be conducted in accordance with the
rules of the Arbitration Institute of the Stockholm Chamber of Commerce.  An
arbitration tribunal has not yet been appointed, and the schedule for the
hearing of the dispute remains to be determined.