This is a correction of the announcement from 16:47 03.04.2014 GMT. Reason for the correction: The tap issues were all in the form of non-index linked bonds. Therefore, all references to "real yield" were incorrect and should have been "nominal yield". This has been corrected in the attached text. Íslandsbanki hf. has tapped into outstanding issues of non-indexed covered bonds listed on NASDAQ OMX Iceland. ISLA CB 15 was tapped for an amount of ISK 780,000,000 at a nominal yield of 6.40% and ISLA CB 16 was tapped for an amount of ISK 120,000,000 at a nominal yield of 6.40%. A new five-year non-indexed issue, ISLA CB 19, was sold today for an amount of ISK 540,000,000 at a nominal yield of 7.05%. Following these latest issues, the total amount issued in ISLA CB 15 has reached ISK 3.92bn and ISLA CB 16 has reached ISK 2.47bn. In total, Íslandsbanki has now issued covered bonds amounting to ISK 27.37bn since its inaugural issue in December 2011. Sold to a broad group of investors, total appetite for the tap issue amounted to ISK 1.98bn, of which 73% of the offers were accepted. Trading is expected to commence on 11 April 2014 on the NASDAQ OMX Iceland. Market making for all of Íslandsbanki's covered bond issues is in the hands of MP bank. The bonds are issued under Act 11/2008 on Covered Bonds which obliges the issuer to fulfil strict requirements, whereby the underlying cover pool must withstand a weekly stress test with regards to interest rates and exchange rates. The issuances are regulated by the Icelandic Financial Supervisory Authority which additionally appoints an independent inspector to monitor the issuances. Special cover pool reports on the covered bond issuances are published quarterly and can be found on Íslandsbanki's web. For further information: * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel: +354 440 3187. * Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel: +354 440 3925. [HUG#1774557]