Islandsbanki hf. : Information on indexation for three covered bond issues

| Source: Íslandsbanki hf. Íslandsbanki hf. 

Íslandsbanki  issues covered bonds, listed on Nasdaq OMX Iceland. Information on
the  base index, the  index value and  index base date  are missing in the issue
description   for three  issues of  covered bonds;  ISLA CBI 16, ISLA CBI 19 and
ISLA CBI 24.

Information on the indexation can be found in the table below.

+-----------+--------------------+----------------+---------------+
|Symbol     |Name of index       |Base index value|Index base date|
+-----------+--------------------+----------------+---------------+
|ISLA CBI 16|Consumer Price Index|384.6           |7 December 2011|
+-----------+--------------------+----------------+---------------+
|ISLA CBI 19|Consumer Price Index|387.88          |7 March 2012   |
+-----------+--------------------+----------------+---------------+
|ISLA CBI 24|Consumer Price Index|387.88          |7 March 2012   |
+-----------+--------------------+----------------+---------------+

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#1807844]