Icelandair Cargo and Icelease, subsidiaries of Icelandair Group, have decided not to purchase and lease four new Airbus A330-200 freighter aircraft from Avion Aircraft Trading as stated in an LOI in May 2007. The aircraft were meant to be delivered in 2010 and 2011. The Airbus list price for this aircraft is USD 130 million. “This decision is made in order to reduce risk in the operation of Icelandair Group in consideration of the current economic uncertainty. We are presently unwilling to take on a commitment of this size and have therefore exited the negotiations in consultation with Avion Aircraft Trading”, says Björgólfur Jóhannsson, CEO of Icelandair Group. “Icelandair Cargo's long term strategy of growth outside our home market in Iceland and the operations of the most efficient aircraft types has not changed but will be implemented later or with other means”, says Pétur J. Eiríksson, the Managing Director of Icelandair Cargo. Icelandair Cargo now operates five Boeing 757-200 freighter aircraft and has grown by over 20% annually in recent years and plans to continue growing through organic growth, alliances and acquisitions. Cargo activity is a fast growing industry around the world and annual growth of 6% for the next 20 years is forecasted. 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, Jönköping, Norrköping, Humberside, East Midlands, New York and Halifax. Further Information: Pétur J. Eiríksson, MD of Icelandair Cargo Tel: +354-893-4925 Björgólfur Jóhannsson CEO of Icelandair Group Tel: +354-896-1455 Guðjón Arngrímsson, VP Corp. Communication Tel: +354-864-5849