Agreement reached with Islandsbanki

The Board of Glitnir is pleased to announce that, subject to completion of conditions precedent, it has reached agreement with Islandsbanki for the redemption of the Tier 2 note and Deposit issued by Islandsbanki and held by Glitnir. This transaction will produce proceeds of around EUR 369 million. It is intended that this amount will be used to redeem the outstanding notes on 22 September 2016.