Íslandsbanki hf. has today sold 2,3,5 and 6 month commercial paper. The total issuance in each series cannot exceed 1,500,000,000 ISK in nominal terms. The auction was structured so that bidders submitted bids at predetermined rates (prices). The 2 month commercial paper was offered at a simple rate of 6.00% (price: 99.1899), the 3 month commercial paper at a simple rate of 6.10% (price: 98.4650), the 5 month commercial paper at a simple rate of 6.25% (price: 97.6106) and the 6 month commercial paper at a simple rate of 6.30% (price: 96.8969). Total bids for a nominal value of ISK 310m were accepted for the 2 month commercial paper, ISK 920m for the 3 month commercial paper and ISK 300m for the 6 month commercial paper. The commercial paper was sold to a broad group of investors. Trading is expected to commence on 27 June2013 on the Nasdaq OMX Iceland. For further information: Investor Relations - Jóhann Ottó Wathne, johann.wathne@islandsbanki.is and tel +354 440 4607. Media Relations - Már Másson, mar.masson@islandsbanki.is, and tel: +354 440 4990. [HUG#1711018]