Special Auction of Treasury Notes RIKB 08 1212

The Treasury has decided to meet a high demand for short term state guaranteed
bonds, by selling in a series of Treasury Notes RIKB 08 1212 with a maturity
date December 12, 2008. This auction will be in addition to the auction program
that was announced in the Annual Government Debt Management Prospect 2008. 

On Tuesday, 27 May, 2008, at 14:00, the Central Bank of Iceland will conduct
the auction. 

The maximum total amount offered in this auction will be 15,000 m.kr. nominal
value. Only primary dealers in Government securities are authorised to submit
bids in this auction. They also submit bids on behalf of investors. The minimum
amount of each bid is 1 m.kr. nominal value. 

The payment and settlement date is Thursday, 29.  May, 2008.

For this auction, the Central Bank requests bids for the following series: 

Series		
RIKB 08 1212

Maturity date
Dec 12, 2008

Outstanding amount	
22,350  m.kr.
	
Time to maturity	
6.5 month

Further information can be obtained from Björgvin Sighvatsson, International
and Market Department, Central Bank of Iceland, at +354 569 9633.