Nýherji hf.'s annual general meeting on 25 January 2008 approved an amendment to the company's articles of association which gives the Board the authority to increase the company's share capital by up to ISK 65m, to be allocated such that up to ISK 25m will be used to pay for shares in TM Software and up to ISK 40m will be available to sell to current shareholders and employees within the Nýherji group. The Board has decided to use this authority to increase the company's share capital by ISK 45m, at a rate of ISK 22 per share. As a result, 15,902,553 shares will be used as part of the payment to the sellers of TM Software hf., 27,097,447 shares will be sold to current shareholders and 2,000,000 shares will be sold to the group's employees. The share offer begins as 09:00 on Monday, 17 March 2008 and lasts until 10:00 on Tuesday, 25 March 2008. The results of the offer will be made public before 16:00 on Wednesday, 26 March 2008. Shareholders' subscription rights will be proportional to their holdings as listed in Nýherji hf.'s share register at the close of business on Thursday, 13 March 2008. The due date for payment will be 28 March 2008. OMX Nordic Exchange Iceland hf. will accept the shares for business no later than 3 April 2008. Shareholders may apply for fewer or more shares than those to which they have pre-emptive rights. Shares that are not allocated in accordance with the above procedure will be divided in proportion to the shareholdings of those applying to purchase more shares than their specified pre-emptive rights allow. Each and every employee in the group who was employed on 14 March 2008 will be invited to purchase either 5,000 or 10,000 shares. The same offer period applies for employees as for shareholders. If the demand for shares by employees exceeds those available, the number of shares that employees have applied for will be proportionally reduced with respect to the oversubscription. The Mýrasýsla Savings Bank (Sparisjóður Mýrasýslu) will oversee the offer. A prospectus is published on the company's website, www.nyherji.is; on the agent's website, www.spm.is; and on www.fme.is, the website of the Financial Supervisory Authority. The prospectus is also available at the company's offices at Borgartún 37, 105 Reykjavík and at Mýrasýsla Savings Bank's head office, Digranesgata 2, 310 Borgarnes, from 14 to 16 March 2008. The prospectus is valid for 12 months from its date of issue and can be accessed during that period.