- Fall of the Icelandic Banking Sector - Impact on Milestone

| Source: Milestone ehf. Milestone ehf. 

The fall of the Icelandic banking sector and the international financial crisis
have impacted the balance sheet and operations of Milestone. The depreciation
of the Icelandic krona has affected the debt level of Milestone in an adverse
manner and asset price development has not been positive. 

The company is currently in negotiations with New Glitnir Bank hf. regarding
financial restructuring of Milestone in the aim of safeguarding the interest of
Milestone‘s creditors. 

Further information
Guðmundur Olason, CEO
Milestone ehf.
Tel: + 354 414 1800