Teymi sells Securitas hf. - Loan to Hands Holding hf. assumed by Landsbanki Islands Main effects on Teymi's Balance Sheet: Net interest bearing debt decreased by ISK 5,4 billion from the end of the year 2006 Current ratio will be 1,19; a change from 0,51 at the end of the year 2006 Teymi hf. has sold all shares in the subsidiary Securitas hf. for ISK 3,8 billion excluding interest bearing debt to an unfounded company owned by Fons Eignarhaldsfelag hf. The sale is subject to due diligence results and the approval of competition authorities. The date of transfer according to the purchase agreement is March 1st and the profit from sale amounted to around ISK 500 million before taxes. The payment will be effected in its entirety in the year 2007. Landsbanki Islands hf. has assumed Teymi's loan to Hands Holding, guaranteed by Teymi, at recorded value ISK 2,688 million at December 31st 2006. The effect of the above mentioned actions on Teymi's balance sheet of 31 December 2006 are a decrease in interest bearing debt excluding cash amounting to ISK 5,4 billion; i.e. a decrease from ISK 27,3 billion to 21,9 billion. In addition, there is an increase in the current ratio from 0,51 to 1,19. Securitas hf. will be included in the consolidated accounts of Teymi group until the end of February 2007. Figures from Securitas' accounts will be presented as discontinued operations in Q1 2007 and thus compared to Q1 2006. The estimated impact of Securitas in the company's previously published prognosis on turnover and EBITDA are around ISK 2 billion in turnover and ISK 300 million in EBITDA. Árni Pétur Jónsson, CEO of Teymi "Since the establishment of Teymi in November last year we have acknowledged that the company's liabilities and interest payments were to high and that it would be our priority to rectify that situation. All our actions have been aiming at strengthening the company's financial position. Since the purchase of Securitas hf. a year ago the company has flourished under the competent leadership of Gudmundur Arason CEO and his staff. I wish the new owners and the company employees the very best in the future." For further information contact: Árni Pétur Jónsson, CEO Ólafur Þór Jóhannesson, CFO Tel + 354 595-5000.