-Share Offering


The Board of Directors of Icelandair Group hf. (the “Company”) has today
decided to launch an open equity share offering (the “Offering”) to increase
the Company's current share capital by between 500 million to 1,059 million
shares. 

The price in the Offering will be ISK 2.5 per share. The allocation of shares
will be determined at the closing of the Offering. The minimum subscription
amount will be 10,000 shares. All current employees of the Company, and its
subsidiary, shall have priority rights for up to 160.000.000 shares. All
current shareholders of the Company shall have priority rights for up to
799.000.000 shares. 

The Company aims to conclude the offering before year end 2010. Details of the
offering will be provided publicly at least two weeks before the end of the
subscription period. Icelandair Group hf. will subsequently request that the
new shares be admitted for trading on Nasdaq OMX Iceland.