Íslandsbanki has published a Base Prospectus for its covered bond programme listed on NASDAQ Iceland. The Base Prospectus, as dated 20 March 2015, is published in English and can be viewed on Íslandsbanki's Investor Relations Website: https://www.islandsbanki.is/english/investor-relations/funding/covered- bonds/prospectus/ . Printed version of the document will be available for the next 12 months as of 20 March 2015 at Íslandsbanki's Headquarters, Kirkjusandi 2, 155 Reykjavík. 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: +354 440 3678. [HUG#1905610]