- Agreements regarding Issuance and Market Making in Treasury Securities

The Minister of Finance has assigned the National Debt Management Agency (NDMA)
the task of offering Agreements Regarding Issuance and Market Making in
Government Securities. 

Members of OMX Nordic Exchange Iceland, with total equity of at least ISK 1,500
million at the end of last year and the necessary equipment to take part in
NDMA's auctions, are invited to participate. NDMA intends to sign agreements
with four or more ICEX-members to become Primary Dealers. 

Primary Dealers have exclusive rights to submit bids at auctions held by NDMA.
A Primary dealer will also have access to a non-competitive part of an auction
where the NDMA will accept for a two-day period bids at the average yield
established in the competitive auction. The amount on offer in the
non-competitive auction will not exceed the equivalent of 10% of the amount
sold to the Primary Dealers in the current competitive auction. Primary Dealers
will also have access to the Securities Lending Facility offered by the NDMA. 

Primary Dealers will take on Market Making obligations in benchmark series of
Treasury Notes and Treasury Bills on OMX Nordic Exchange Iceland. Primary
Dealers will be obliged to submit bid and ask quotes for at least ISK 100
million in each series in accordance with maximum spread as laid out in the
Agreement. It will be sufficient for Primary Dealers to submit bid offers in
Treasury Bills and Treasury Notes with three-months, or less, to maturity. 

Further information can be found in the attached Sample Agreement on Issuance
and Market Making in Treasury Securities. Those members of OMX Nordic Exchange
Iceland wishing to become Primary Dealers in Treasury Notes and Treasury Bills
are required to attend to the NDMA office at 09:15, Tuesday May 29 2007, at
Borgartun 21 Reykjavik, where the signing of the agreements will take place. 

For further information please contact Laufey Omarsdottir, tel: +354 540 7500