Sale of a portion of SPRON's mortgage loans to the Housing Financing Fund in final stages

Negotiations with the Housing Financing Fund on the sale of a portion of
SPRON's mortgage loans worth ISK 20 billion is in it's final stages.  Loans to
customers at the end of the third quarter in 2008 amounted to ISK 206.5
billion. The loans will be sold at book value and SPRON will receive 80% of the
sale price immediately but 20% will be paid later. The purpose of the sale is
to strengthen the Group's liquidity and the sale will have no effect on the
Group's equity. 

The loans in question are domestic morgtage loans and the sale of
the loans will have no effect on debtors as SPRON will continue the
administration of the loans. 

For further information please contact Gudmundur Hauksson CEO, tel: +354 550
1213