Exista enters into discussions on share capital increase


At its meeting today, the Board of Directors of Exista hf. agreed to commence
discussions with a private liability company owned by Agust Gudmundsson and
Lydur Gudmundsson, concerning Exista's purchase of all share capital in Kvakkur
ehf., and subsequently exercise the authorisation, granted by the
extraordinary shareholders' meeting of 30 October 2008, to increase share
capital in Exista by 50 billion shares in order to pay for the shares in
Kvakkur ehf. 

The purpose of Kvakkur ehf. is to preserve cash. The above discussions involve
Agust and Lydur Gudmundsson's contribution of cash from Kvakkur ehf. to Exista
in exchange for new shares in the Company. The aim of the discussions is to
fortify Exista's equity base and enhance its cash position, thus strengthening
the Company's position in the discussions currently underway with financial
institutions and creditors. 

In addition, the Board of Exista agreed to call a shareholders' meeting no
later than 31 December 2008. At that meeting, the Board will present a motion
to write down the Company's share capital. The date and agenda for the
shareholders' meeting will be announced at a later time. 

Enquiries:
Exista hf.
Group Communication
Sigurdur Nordal
Managing Director
+354 550 8620
ir@exista.com