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.