Share Purchase Agreement Regarding Travel Service


Icelandair Group has signed a share purchase agreement with its co-owners of
the Czech airline, Travel Service a.s. , in which shareholding of Icelandair
Group in Travel Service is reduced from 80% to 66% of total shares. Unimex
Group and Roman Vik/GTO who before the agreement owned 20% of the shares of
Travel Service will purchase an additional 14%  and now hold 34% of the total
shares. 

"With this agreement Icelandair Group is on one hand guaranteeing the financing
of Travel Service and on the other hand solidifying the partnership with our
co-owners, Unimex Group and Roman Vik, CEO of the company. Icelandair purchased
80% of Travel Service shares from them last year and the company became part of
Icelandair Group in the second quarter of this year. It has grown rapidly, it's
results have been very strong and its worth in our books has grown  from the
time of purchase. That, in addition to currency effects, will lead to a sale
loss for Icelandair Group of approximately ISK 450 Million due to the
agreement", says Björgólfur Jóhannsson, CEO of Icelandair Group. 

For further information, please contact:
Björgólfur Jóhannsson CEO of Icelandair Group 			Tel.: 896-1455
Bogi Nils Bogason, Chief Financial Officer, Icelandair Group		Tel.: 665-8802