Following the EFTA Court advisory opinion on the indexation of mortgage
lending
in Iceland as published 28 August 2014, Íslandsbanki would like to make
known
the following:

The largest issuers of bonds listed in the Icelandic
Stock Exchange have decided
to relieve their market makers of trading duties
today, 28 August.

As a result, there may be material disruption in the market
environment and
trading of other bonds. In that light, Íslandsbanki has decided
to temporarily
relieve its market maker, MP banki, of its trading duties on the
Bank's covered
bonds today, 28 August 2014.


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#1851781]