Björgólfur Jóhannsson will become President and CEO of Icelandair Group 15 January 2008. Jón Karl Ólafsson will step down as President and CEO at the same time by an agreement with the board. Gunnlaugur M. Sigmundsson, Chairman of the Board Icelandair Group: “As announced this fall, organizational changes within Icelandair Group are being made. One part of those changes is to create a separate role for the President and CEO of Icelandair Group and another for the CEO of the subsidiary, Icelandair. With this in mind a new President and CEO of Icelandair Group, Mr Björgólfur Jóhannsson will join us. Björgólfur has excellent credentials, vast experience in running multi-national operations and companies and we look forward to the cooperation. Jón Karl has led Icelandair Group and Icelandair through a transformation; from being a part of FL Group and into a strong independent and listed company. With new ownership and a new board the Group has shifted its focus and we have decided to part ways. We thank Jón Karl for his valuable contribution to the company over the years.” Björgólfur Jóhannsson incoming President and CEO of Icelandair Group: “Icelandair Group is a dynamic company in an exciting growth industry, the flight, transportation and travel industry. The company is financially strong and I look forward to meet its excellent employees and work with them to take Icelandair Group forward.” Jón Karl Ólafsson, outgoing President and CEO of Icelandair Group: “I've been involved with Icelandair Group and its predecessors for 25 years and worked on many exciting and important projects during that time. The company has expanded fast during my tenure these two years. Now that the emphasis is shifting, I believe that this is a great time to look for new opportunities elsewhere. I have gained many close friends working for Icelandair Group and I thank them for our time together.” Björgólfur Johannsson became CEO of Icelandic Group in March 2006. He became the CEO of Síldarvinnslan in 1999 and served as the Director of Innovation and Development at Samherji from 1996. From 1992-1996 Björgólfur was the CFO of UA in Akureyri, having worked as a chartered accountant for two auditing firms from 1980. Björgólfur has served as the Chairman of the Board of the Federation of Icelandic Fishing Vessel Owners since 2003. He graduated with a degree in business administration from the University of Iceland in 1983 and became a chartered accountant in 1985. Further information: Guðjón Arngrímsson VP Corporate Communications Tel: Int +354 864 5849 E-mail: gudjon@icelandairgroup.is www.icelandairgroup.com