- The call upon a Shareholders' Meeting in Icelandair Group hf.


The Board of Directors of Icelandair Group hf. decided earlier today, September
3rd 2007, to call upon a Shareholders' Meeting in the Company on September 12th
2007. The business of the meeting is the Boards' motion on the decrease of the
number of board members from seven to five. Should the motion be accepted by
the shareholders, the meeting will proceed with the election of board members.
The Board will also present its' motion on remuneration for reserve board
members. 

The Chairman of the Board of Directors, Finnur Ingólfsson, announced at the
Board Meeting his decision on stepping down from the Board of Directors of the
Company on the aforementioned Shareholders' Meeting, which has now been called
upon. 
Following is the announcement of the Shareholders' Meeting. 

Shareholders' Meeting of Icelandair Group hf.

September 12th 2007

The Board of Directors of Icelandair Group hf. hereby calls upon a
Shareholders' Meeting on September 12th 2007 at 16 pm. The meeting will be held
at Nordica Hotel, Reykjavik. 

The business is as following:

1. The Motion on amendments to the Articles of Association regarding the
   decrease of  board members from seven to five. 

2. Election of members of the Board of Directors, should the motion under part 1
   above be approved. 

3. Proposal on remuneration of the reserve members of the Board of Directors:

4.Other business, lawfully submitted.

The Board of Directors of Icelandair Group hf. submits the following proposals
to the company‘s Shareholders' Meeting on September 12th 2007. The proposed
changes are as follows:
 
Motion on amendments to the Articles of Association:

The Board proposes that Article 18, paragraph 1 of the Articles of Association
will be amended in the way that the number of board members will be decreased
from seven to five. Should the motion be approved, the Article will read as
follows: 

“The Board of Directors of the Company shall be composed of five members and
three alternate members elected at the Annual General Meeting for a term of one
year. The eligibility of members of the Board is subject to statutory law.
Elections to the Board shall always be by ballot if the number of nominations
exceeds the number of Members to be elected.” 

Proposals on members of the Board of Directors for the term of one year:
With the reservation that the motion on the decrease of the number of board
members will be approved, which unavoidably calls for a new election of board
members, all announcements of candidacy for the Board of Directors or the
reserve board shall be delivered in writing to the Company's head quarters at
Reykjavíkurflugvöllur before 16:00 on Friday, September 7th 2007. The
announcement shall indicate, as well as the name of the candidate, the
candidates' social security number and address, information on main occupation,
other board participation, education, experience and share ownership in the
Company. The announcement shall also contain information on connections of
interest with the Companys' main business associates and the Companys'
competitors, as well as information on connections to other shareholders in the
company which hold a share of 10% or more. 

Proposal on remuneration of reserve board members of the Board of Directors:
The Board proposes that reserve board members will receive the same
remuneration as other board members for the period from the date of the
Company's Annual General Meeting held in March 2007 until the date of this
meeting. For the period as from the date of this Shareholders' Meeting until
the Companys' next Annual General Meeting, the Board proposes that a reserve
board member will receive ISK 100.000,- for each attended Board Meeting. 
The business of the meeting and finalized motions will be accessible at the
Companys‘ head quarters at Reykjavíkurflugvöllur for the inspection of
shareholders as from September 4th  2007. 

Tickets for entrance, meeting papers and voting ballots will be handed out to
shareholders or their proxy at the place of the meeting from 15:30 on the date
of the meeting, Wednesday, September 12th  2007. 


Respectfully,

The Board of Directors of Icelandair Group hf.