The Housing Financing Fund - Results of HFF Bond Auction

The Housing Financing Fund (HFF) announces the results of an HFF bond auction on September 30th 2011. Valid bids submitted amounted to ISK 6.418 billion at nominal value which match ISK 9.752 billion at market value.

| Source: ÍL-sjóður ÍL-sjóður

The following bids were accepted:

HFF150434, nominal amount of ISK 1.100 billion which match ISK1.648 billion at market value, weighted yield without commission is 3.13%

HFF150644, nominal amount of ISK 2.800 billion which match ISK 4.509 billion at market value, weighted yield without commission is 3.21%

The total weighted yield of the accepted bids, without commission was 3.19% and with commission 3.20%. Settlement date will be October 7th 2011.

For further information please contact Sigurður Jón Björnsson Tel +354 569-6990 and Herdís Einarsdóttir Tel +354 569-6993.