Icelandair Cargo and Icelease, subsidiaries of Icelandair Group, today signed an agreement with Avion Aircraft Trading on the lease and purchase of four new Airbus A330-200 freighter aircraft. Icelandair Cargo leases two aircraft directly form AAT but Icelease buys two and leases them back to Icelandair Cargo. Two aircraft will be delivered in the spring of 2010 and two in 2011. With these four Airbus aircraft Icelandair Cargo is implementing its long-term strategy to operate cost efficient aircraft, run scheduled long-haul flights to markets in Asia and America, to multiply the size of the company as well as to greatly expand activities at Keflavik International Airport in Iceland. The estimated yearly operating income from the four aircraft is around ISK 15-18 billion. The A330-200 freighter aircraft goes into production late in 2009 and Icelandair Cargo will be among the first operators in the world. A330-200 has 50% more capacity than the B757-200 aircraft the company uses now, carries up to 69 tons, and has more range. The aircraft engines meet most stringent standards on emission and noise. The Airbus list price for this aircraft is USD 130 million. Today around 80% of the freight carried by Icelandair Cargo is to or from Iceland and the rest from international markets. The aim of Icelandair Cargo is to turn these proportions around and reduce its dependence on the home market. “We are particularly looking towards China, India and the Persian Gulf and connections through a hub in Europe to Iceland and North America”, says Pétur J. Eiríksson, the Managing Director of Icelandair Cargo. “Keflavik International Airport will be another hub connecting cities in USA and Canada with key markets in Europe. We plan to triple the tonnage, triple the present revenue compared to today as well as tripling the contribution. “Only healthy and profitable companies can invest in the newest and most efficient aircraft and this transaction shows the dynamic and the vision the Groups' companies possess,” says Jón Karl Ólafsson the CEO of Icelandair Group. “Icelandair Cargo has grown fast and profitably in the past years and heads for even more expansion into new markets. Icelease has lease contracts with airlines around and world and is increasingly active in aircraft trading.” Icelandair Cargo now operates five Boeing 757-200 freighter aircraft and intends to grow them by one or two until the delivery of the A330-200. In addition to selling the belly space to 22 Icelandair destinations in Europe and North America the company serves 8 scheduled freighter destinations: Liege, Brussels, Jonkoping, Humberside, East Midlands, New York, Charlotte and Halifax. After the delivery, these two aircraft types will be operated in parallel for an undefined time. Cargo activity is a fast growing industry around the world and annual growth of 6% for the next 20 years is forecasted. Icelandair Cargo has grown faster or over 20% annually in recent years and plans to continue growing - through organic growth, alliances and acquisitions and growth in capacity. Further Information: Pétur J. Eiríksson, MD of Icelandair Cargo Tel: +354-893-4925 Jón Karl Ólafsson CEO of Icelandair Group Tel: +354-505-0371 Guðjón Arngrímsson, VP Corp. Communication Tel: +354-864-5849