Íslandsbanki hf. obtains 42% of shares in Icelandair Group hf.

Íslandsbanki today announced that it has obtained 42% of shares in Icelandair
Group. In its press release the Bank says that this will not affect the daily
operations of the company, that the company will continue to be listed on OMX
Nasdaq and that the Banks's stake will be sold in an open and transparent sales
process as soon as possible. Íslandsbanki also says in the press release that
Icelandair Group's operations in the first quarter 2009 exceeded management
expectations. 

For further information please contact
Björgólfur Jóhannsson, Icelandair Group CEO tel:  +3548961455
Bogi Nils Bogason  Icelandair Group CFO tel: +3546658801

Following is the press release of Íslandsbanki hf:

Press Release:


“Íslandsbanki hf. obtains 42% of shares in Icelandair Group hf.
-	Will not affect the daily operations of Icelandair Group hf.
-	The company will continue to be listed on OMX Nasdaq 
-	The FSA in Iceland has granted Íslandsbanki an exemption from a mandatory bid
-	The Bank's stake will be sold in an open and transparent sales process

Reykjavík 18 May 2009 Íslandsbanki hf. has, as of today, obtained 42% of shares
in Icelandair Group hf. The shares were acquired at the price of ISK 4.5 per
share which is the last trading price of the company's shares. Total shares
owned by the Bank after the acquisition is 47%. This change in ownership will
not affect the daily operations of Icelandair Group hf. 

The shares which Íslandsbanki hf. has taken possession and title of today were
pledged as security for loans to finance shareholders investment in Icelandair
Group. 

Financial restructuring continues
Operations of Icelandair Group hf. in the first quarter 2009 exceeded
management's expectations. Íslandsbanki hf. has worked closely with Icelandair
Group hf. on the financial restructuring of the company. This work is in
progress and the Bank intends to continue to work with the company's management
team. 

The company will continue to be listed
Icelandair Group hf. is listed on Nasdaq OMX Stock Exchange and its current
number of shareholders is 850. The group consists of 12 subsidiaries working in
the airline and travel service industry with a total of 4000 employees. 

It is the intention of Íslandsbanki hf. that Icelandair Group hf. will continue
to be a listed company at Nasdaq OMX.  The Bank intends to sell its stake in an
open and transparent sales process at earliest possible time. 

The Financial Supervisory Authority in Iceland has granted Íslandsbanki hf. an
exemption from a mandatory bid, but has limited the Bank's voting rights to 30%
of the common stock. 

A shareholder meeting is expected to be held in the near future. 


For further information please contact:
Már Másson, Head of Corporate Communications, mobile +354 844 4990, 
e-mail: mar.masson@islandsbanki.is .

Vala Pálsdóttir, Corporate Communication, mobile, +354  844 4989, 
e-mail: vala.palsdottir@islandsbanki.is .“