CORRECTION: Announcement 2007-05-29 15:46:39 - Signing of Agreements Regarding Issuance and Market Making in Government securities

Correction: National Bank of Iceland changed to Landsbanki hf

On May 29, the National Debt Management Agency (NDMA) signed agreements
regarding Issuance and Market Making in Government securities. The objective of
the agreements is to enhance the Treasury's access to borrowed money and
strengthen price formation in the secondary market. 

As of June 1, 2007, seven financial institutions have been appointed as
“Primary Dealers in Government securities”. They are: Glitnir Bank, Kaupthing
Bank, Landsbanki hf, MP Investment Bank, Straumur Burdaras Investment Bank,
Saga Capital Investment Bank and Icebank. 

The following bulletpoints describe the content of the Agreement:

•  Primary Dealers have exclusive rights to submit bids at NDMA's auctions.
 
•  Primary Dealers have exclusive access to NDMA's Securities Lending Facility.

•  Primary Dealers are obliged to submit bids at each auction for ISK 500
   million   nominal value. 

•  Primary Dealers are Market Makers in the secondary market for Treasury Note
   and Treasury Bill benchmark series 

•  Primary Dealers are obliged to quote on OMX Nordic Exchange Iceland bid and
   ask offers for at least ISK 100 million nominal value in each benchmark
   series with time-to-maturity more than three months.  For securities with
   time-to-maturity of less than three months this obligation is limited to
   submitting a bid-offer for ISK 100 million. 

•  Primary Dealers are in their bid and ask quotes governed by maximum spreads
   as laid out in the agreements. 

•  Primary Dealers are obliged to renew their offers within ten minutes after
   execution of transaction. If the Primary Dealer's total transaction in one
   series during that day equals ISK 600 million at nominal value, the Primary
   Dealer is permitted to withdraw from the maximum spread requirement for that
   particular series for the remainder of that day. 

•  The agreement is valid from June 1, 2007 to May 31, 2008

•  Total remuneration paid to all Primary Dealers is ISK 160 million for the
   duration of the agreement. 

A sample agreement is attached that provides comprehensive information on the
Primary Dealers rights and obligations.