Íslandsbanki hf. has today completed an auction of covered bonds listed on Nasdaq Iceland. All bids were rejected at this time. For further information: * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and tel: +354 440 4752. * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel: +354 844 3678. [HUG#1888429]