Teymi's Board of Directors has decided to exercise the authorisation provided in the company's Articles of Association to increase its share capital and sell the shares to investors in a share offering. Shares will be on offer for the total amount of ISK 4 billion. The purpose of the offering is to support the further growth of Teymi hf., strengthen the Company and enable it to make use of investment opportunities which may materialise in the market. Landsbanki Íslands has guaranteed the offer in whole. The share price will be announced before 10:00 Thursday 22 March 2007. The offering will commence at 10:00 Thursday 22 March 2007 and end at 16:00 Friday 23 March 2007. The results of the offering will be announced on the ICEX news service before 10:00 Monday 26 March 2007. Payment is due on 28 March 2007. The offering will be in two parts; an offer to existing shareholders and to institutional investors. 1. Teymi's shareholders will be offered new shares for the total amount of ISK 2 billion. Each shareholder will be entitled to participate in the offering in proportion to his/her respective shareholdings as recorded in Teymi's share register at the close of business on 15 March 2007. Shareholders may subscribe for a lower or higher number of shares than they are entitled to. Unsubscribed shares in this part of the offering will be distributed to shareholders who have subscribed for an additional allotment, in proportion to their respective shareholdings as recorded in Teymi's share register at the close of business on 15 March 2007. Should the demand for the shares offered to shareholders be insufficient to place the full offer, the Board may allocate any such unsubscribed shares to institutional investors. Subscriptions may only be submitted electronically on Landsbanki´s website (www.landsbanki.is) providing an ID. Number and a password which will be sent to shareholders by mail. Electronic confirmation is required for valid subscription in this part of the offering. 2.Shares for the total amount of ISK 2 billion will be offered to institutional investors. Only institutional investors as defined in Point 7, Paragraph 1, Article 2 of Act No. 33/2003 on Securities Transactions may take part in this part of the offering. Institutional investors must submit a binding application for subscription using the forms provided for this purpose, which can be obtained from Landsbanki's Brokerage department and Corporate Finance department. Teymi´s Board of Directors is authorised to reject subscriptions in this part of the offering in part or in whole. Should there be insufficient demand for shares in the offer to institutional investors, the Board may allocate any unsubscribed shares in this part of the offering to Teymi´s existing shareholders. A notification of the Board's approval of subscription and allocation of shares will be sent to institutional investors with payment instructions no later than 26 March 2007. Payment notes for the allocated number of shares, will also be payable in Icelandic internet banks at the end of the subscription period. Existing shareholders are permitted to take part in both parts of the offering if they are defined as institutional investors in accordance with law. Landsbanki Íslands Corporate Finance is the manager of the offering.