Company Announcement No. 22/2009 Today P/F Føroya Banki entered into a cooperation with DLR Kredit A/S regarding intermediation of mortgage loans on the Faroe Islands. At the same time the Bank becomes a shareholder of DLR Kredit A/S. The agreement comprises mortgage lending to retail customers on the Faroe Islands. P/F Føroya Banki provides the mortgage loans in accordance with guidelines agreed upon by the parties. Until now the Bank has provided mortgage loans, booked on its balance sheet, with fixed and variable interest as well as with interest caps. With the new agreement the Bank will have the opportunity to offer mortgage loans funded by bonds issued by DLR Kredit. It is the Bank's objective to offer a wide range of financial services and based on the agreement with DLR Kredit the Bank widens its range of services. Further, the agreement with DLR Kredit reinforces the Bank's funding base. The Bank expects to launch the new service in the beginning of September 2009. Further Information: Janus Petersen, CEO, tel: (+298) 330 340