Icelandair Group hf. financial restructuring completed Icelandair Group hf. announced on 14 and 15 June 2010 that the Enterprise Investment Fund (EIF) and the Pension Fund of Commerce (PFC) had entered into a binding agreement with the Company to the effect that the two funds would invest in Icelandair Group for ISK 4 billion at a share price of 2.5. In the agreement EIF undertook to contribute ISK 3 billion, thereby acquiring 1.2 billion new shares in the Company. The PFC undertook to contribute ISK 1 billion, thereby acquiring 400 million new shares in the Company. The agreements were concluded with the following conditions: + Positive results of Icelandair Group due diligence + Exemption of the EIF by the Financial Supervisory Authority (FME) from an obligatory take-over of the Company + Achievement by Icelandair Group hf. of a minimum of ISK one billion in market value of new shares from other investors All of the above conditions have been met, and investors have subscribed to a total of ISK 5.5 billion at market value in new share capital, which corresponds to 2.2 billion new shares in Icelandair Group hf. The agreement assumes the conversion by Icelandair's largest creditors of debts in the amount of ISK 3.6 billion into shares based on a share price of 5 per share, which corresponds to a subscription to 720 million new shares. The total increase in share capital will thus amount to 2.92 million new shares at nominal value. Icelandair Group hf. plans furthermore to raise approximately ISK 2.5 billion in additional share capital. The timing and structure of that offering will be disclosed later. The financial restructuring of the Company will reduce its debt by over ISK 10 billion through the transfer and sale of certain assets which are not a part of the Company's core business, as announced in a notice to the Nasdaq OMX Iceland last 25 March. For further information, please contact: Björgólfur Jóhannsson CEO, Icelandair Group, tel. +354-896-1455 Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801