The Treasury has decided to meet a high demand for short term state guaranteed bonds, by selling in a series of Treasury Notes RIKB 08 1212 with a maturity date December 12, 2008. This auction will be in addition to the auction program that was announced in the Annual Government Debt Management Prospect 2008. On Thursday, 27 March, 2008, at 14:00, the Central Bank of Iceland will conduct the auction. The maximum total amount offered in this auction will be 10,000 m.kr. nominal value. Only primary dealers in Government securities are authorised to submit bids in this auction. They also submit bids on behalf of investors. The minimum amount of each bid is 1 m.kr. nominal value. The payment and settlement date is Monday, 31 March, 2008. For this auction, the Central Bank requests bids for the following series: Series RIKB 08 1212 Maturity date Dec 12, 2008 Outstanding amount* 15.000 m.kr. Time to maturity 8.5 month Further information can be obtained from Björgvin Sighvatsson, International and Market Department, Central Bank of Iceland, at +354 569 9633.