Icelandair Group completes debt financing with Deutsche Bank

Icelandair Group has negotiated a new loan facility with Deutsche Bank in the
amount of USD 18 million. The loan has maturity of seven years and the Bank
will hold collateral in two of the company’s aircraft. The loan will be used to
refinance other loans that were recently repaid.

Payments are index linked within a predefined range, which equals a variable
interest rate with floor and cap. The development of the index will affect the
effective interest rate on the loan. Deutsche Bank manages the index which is
quoted on Bloomberg as DBPPULSU INDEX.

Björgólfur Jóhansson, CEO Icelandair Group: “We are very pleased to have
concluded the financing with Deutsche Bank, especially in-light of the current
turmoil in financial markets. We believe that our access to international
financial markets confirms the viability of our business model.”