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 5.75% (price: 98.0886) and the 6 month commercial paper at a simple rate of 5.85% (price: 97.1275). Bids for ISK 260 million were accepted for the 4 month commercial paper and ISK 740 million for the 6 month commercial paper. Prior to the auction the total outstanding commercial paper amounted to ISK 4.92bn. The commercial paper was sold to a broad group of investors. Trading is expected to commence on 19 September 2014 on the Nasdaq OMX Iceland. 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#1855150]