Islandsbanki hf. : Change in the ISLA CB 16 issue description approved by owners and changed at the Icelandic Securities Depository

Íslandsbanki's covered bond ISLA CB 16 was issued according to its Final Terms
on 18 October 2013. The terms were not correctly stated in the issue description
dated 17 October 2013 and are therefore not correctly recorded at the Icelandic
Securities Depository. The issue description dated 17 October stated, in chapter
2.2, that there were 2 principal payment dates per year, 22 April and 22
October, up until the Final Maturity Date on 22 October 2016. In the Final
Terms, dated 18 October 2013, it is stated that the bonds will pay one principal
payment at its maturity on 22 October 2016.



Íslandsbanki sought approval from the owners of these bonds to amend the issue
description at the Icelandic Securities Depository so that it is clearly stated
that no principal repayments will be made before Final Maturity date on 22
October 2016. The amendment has been approved by the owners and the change in
the issue description at the Icelandic Securities Depository has been made.



For further information:



  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
    +354 440 3187.
  * Media Relations - Dögg Hjaltalín, dogg.hjaltalin@islandsbanki.is and tel:
    +354 440 3925.


[HUG#1778570]