Islandsbanki hf. : Íslandsbanki sells commercial paper

| Source: Íslandsbanki hf.
Íslandsbanki  hf.  has  today  sold  4 and  6 month  commercial paper. The total
issuance  in each series  cannot exceed ISK  1.5bn in nominal terms. The auction
was  structured so that bidders submitted  bids at predetermined rates (prices).
The  4 month  commercial  paper  was  sold  at  a  simple  rate of 5.85% (price:
98.2439) and  the  6 month  commercial  paper  at  a simple rate of 5.9% (price:

Bids  for ISK 260 million were accepted for the 4 month commercial paper and ISK
300 million  for the  6 month commercial  paper. Prior  to the auction the total
outstanding commercial paper amounted to ISK 7.54bn.

The commercial paper was sold to a broad group of investors. Trading is expected
to commence on 27 June 2014 on the Nasdaq OMX Iceland.

For further information:

  * Investor Relations - Tinna Molphy, and tel:
    +354 440 3187.
  * Media Relations - Dögg Hjaltalín, and tel:
    +354 440 3925.