In an announcement from Icelandair Group hf. dated 25 March 2010, it was stated that the Company and its largest lenders, Íslandsbanki and Glitnir Bank hf., had reached an agreement on the final arrangements of the financial restructuring of Icelandair Group. Among other things, the restructuring will call for the involvement of other lenders in addition to leasing companies owning aircraft used by Icelandair Group subsidiaries in their operations. Approval from a shareholders' meeting of the Group is required for certain aspects of the reorganisation, in addition to the final approval of lenders. In relation to a closed share offering, Icelandair Group retained DVB Bank to prepare a valuation of the Company. DVB Bank has been a consultant both to the Icelandic banks and Icelandair Group in the restructuring process and has been involved in the process since mid 2009. The valuation from DVB Bank is based on five year financial projections prepared by the management of Icelandair Group. Loftleidir was valued separately from other aspects of the business. Loftleidir was valued only on a DCF analysis basis, while other aspects of the business was valued based on a DCF and a peer analysis. This valuation does not and is not intended to represent the value of shares in the Company which is currently traded on the Icelandic Stock Exchange, and should not be relied upon by investors. The underlying assumptions for this valuation are based on the financials of the Company after financial restructuring, which significantly differs from the status of the Company which is currently being traded. The valuation range is based on the average of these valuation methods and values the equity of Icelandair Group hf. on the range from ISK 16.4 Bn to ISK 25.6 Bn A summary of the valuation is attached. For further information, please contact: Björgólfur Jóhannsson, CEO, tel.+354- 896-1455 Bogi Nils Bogason, CFO, tel.+354-665-8801