Landsvirkjun and Alcan Iceland Ltd. have met or have waived the reservations made in the power purchase agreement between the parties regarding sale of electricity to the aluminium smelter at Straumsvík. The agreement was signed last 15 June with specific reservations. The agreement thus comes fully into force on 1 October 2010. The agreement is twofold. First, it involves a renegotiated price on current sales of energy for the smelter‘s present production (2.932 GWh), and secondly the provision of additional energy (658 GWh) for the smelter‘s planned production increase. The new energy price will take effect on 1 October 2010. The price is in USD and connected to US Consumer Price Index (CPI). The link to aluminium prices is removed. The contract is valid until 2036 and thus involves an almost 12 year extension from the current contract. Hörður Arnarson, Landsvirkjun‘s CEO says the agreement is the first step in the company‘s new strategy for pricing energy in Iceland in line with trends in international markets. He says the agreement is in many ways a landmark event in the company's energy sales. For more information: Ragna Sara Jónsdóttir Head of Corporate Communications sara@lv.is +(354) 515 9000 / +(354) 849 2122