Islandsbanki hf. : Covered bonds


Íslandsbanki hf. has today completed an auction of covered bonds listed on
Nasdaq Iceland.  All bids were rejected at this time.

For further information:

  * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
    tel: +354 440 4752.
  * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
    +354 844 3678.


[HUG#1888429]