Flagging

Today, December 19th 2008, Icebank hf. has announced that the bank has
93.572.562 shares in Icelandair Group hf. which totals 9,36% of totalequity of
Icelandair Group hf. Before the transaction the bank had 38.017.006 shares in
Icelandair Group. Due to a margin call the bank acquired the shares from the
former owners. Attached is the flagging form.