Atorka Group hf. - Company Announcement

Extension on Standstill Agreement

On the 25th of March, Atorka Group hf. (Atorka) announced extension on
Standstill agreement to 31st of March 2009.  Atorka has in cooperation with its
main creditors worked on further extension on the Standstill agreement, as well
as negotiated with other creditors.  Today, Atorka and representatives of
owners of the bond series, agreed to extend the agreement until 30th of April
2009.  In the meantime Atorka will work on its financial restructuring in
cooperation with its main creditors. 

The creditors behind the Standstill agreement represents over 98 % of all
Atorka's creditors. 

Further information is available from Arnar Mar Johannesson, CFO,  tel. +354
540-6200.