- Extended Settlement Period for Equities on the Nordic Exchange in Iceland

As of 14 May 2007, the settlement period for equity transactions on OMX Nordic
Exchange in Iceland (ICEX) will be three days (T+3) rather than the current one
day (T+1). This means that from 14 May onwards, delivery of shares and payment
for them will take place prior to market opening on the third trading day after
the conclusion of a transaction. 

The extension of the settlement period is primarily intended to facilitate
access to the Icelandic market by foreign investors. T+3 settlement is the
general rule on the world's leading equity markets and the settlement period
will now be harmonized with other equity markets of the OMX Nordic Exchange.
ICEX considers this a positive step for the Icelandic equity market, as
increased participation by foreign investors should boost liquidity and improve
price formation. 

Since this means a change in a long-established practice, it is important that
financial enterprises make every effort to inform their clients of the
impending changes in settlement. ICEX would also like to draw attention to the
following aspects in particular: 

-Ownership and voting rights: Changes to the shareholders' registry, and the
resulting transfer of voting rights, are not implemented until the third day
following a transaction unless expressly agreed otherwise. It is important to
bear this in mind as shareholders' meetings approach. 

-Determination of dividend payments: The extension of the settlement period to
three days results in the ex-date being two days before the record date, i.e.
if owners of record at the beginning of trading date t have the right to
dividend then transactions in shares from day t-2 onwards do not confer the
right to a dividend. Issuers of listed equities should bear these changes in
mind when choosing a record date. When settlement takes place T+3, it is
advisable to have the record date no sooner than the third trading day
following the date the dividend was decided (usually the date of the AGM),
since this will ensure that transactions without dividends do not commence
until at the earliest on the day following the decision on a dividend by a
shareholders' meeting. It is not advisable to have the ex-date precede the
dividend decision by a shareholders' meeting, since this would entail a
theoretical (if unlikely) possibility of ex-dividend transactions commencing
and the anticipated dividend subsequently rejected by a shareholders' meeting. 

In recent years, ICEX has placed emphasis on adapting the trading environment
in Iceland as closely as possible to that of neighbouring markets, in an
attempt to facilitate access to the market. ICEX considers it important for the
Icelandic market to continue to move in this direction, as these efforts have
already resulted in increased interest and trading by foreign parties.