SOURCE: Glitnir

December 05, 2006 06:23 ET

Glitnir - Share offering of Icelandair Group Holding hf. completed Substantial oversubscription

REYKJAVIK, ICELAND -- (MARKET WIRE) -- December 5, 2006 --

  * Institutional investors subscribed to buy 300 million shares at a
    sales value of ISK 8.1 billion. Oversubscription from
    institutional investors was 173%.
  * Foreign institutional investors bought 43% of the shares
    originally offered to institutional investors and now own 4.7% of
    the company.
  * 669 of the company's employees are now among its shareholders
    owning more than 6% of the company's shares.
  * Shares at a sales value of ISK 4,995,000,000 were offered in
    total. Investors applied to buy shares at a sales value of ISK
    10.3 billion in total which means that oversubscription is 105%.
  * Trading with the company's shares, which will have the ticker
    symbol ICEAIR, will start on the Icelandic Stock Exchange (ICEX)
    Thursday, 14 December 2006.

The Share Offering of Icelandair Group Holding hf. was completed yesterday, 4 December 2006, at 7pm. A total of 185,000,000 shares at the price of ISK 27.0 per share were offered or a total of ISK 4,995,000,000 at sales value or 18.5% of the company's shares. In total, investors applied to buy 380 million shares, which means that oversubscription is 105%.

In the run-up to the Share Offering, 180 million shares were sold or 18% of the company. Before that, four groups of investors had bought 63.5% in the company. After the Share Offering now, where 18.5% of the company's shares were sold, 100% of shares in Icelandair Group Holding hf. are therefore sold and the number of shareholders in the company is over 1300.

Managers and employees of Icelandair Group Holding hf. and subsidiaries, now own over 6% share in the company. A total of 35 million shares were reserved in the employee phase of the offering, thus allowing for all employees to buy the maximum Share Offered. A total of 669 employees bought shares in this phase of the offering. The shares that were not sold in this phase will be used to meet excess demand in the institutional investor phase, as indicated in the company's prospectus.

In the offering to institutional investors, 110,000,000 shares were for sale or a total of ISK 2,970,000,000 at sales value. In total, institutional investors subscribed to buy 300 million shares for ISK 8.1 billion at sales value. Foreign institutional investors bought about 43% of the shares originally offered to institutional investors and therefore own 4.7% of Icelandair Group Holding hf. after the offering. Glitnir Markets in Reykjavík, Oslo and Stockholm all contributed to get these results.

In the offering to the general public, 40,000,000 shares were for sale or a total of ISK 1,080,000 at sales value. In total, subscriptions for ISK 1.935 million at sales value were received, representing 80% excess demand. In accordance with ICEAIR's prospectus, subscriptions were subject to reductions, which resulted in investors receiving 55.8% of the amount they applied for.

The company will now fulfil requirements for the distribution and number of shareholders which are a precondition for a listing on ICEX. The due date of payment slips is 11 December 2006 and trading is expected to start Thursday, 14 December 2006.

Jón Karl Ólafsson, CEO of Icelandair Group: "We are very pleased with the extensive participation. Icelandair Groups is a company which through its transportation and tourism services plays an important role in Icelandic society and it is a great strength for the company to sense the interest and trust which appears in the sale of the company and its listing in the market. I very much look forward to the task of building up the company with new owners, not least because among the new owners are many colleagues who bought shares in the company."

Einar Örn Ólafsson, Executive Director at Glitnir Corporate Finance is very pleased with the outcome of the Share Offering. "Icelandair is a solid and well run company and it has been very enjoyable to experience investors' interest in the company. It is particularly pleasant to see foreign players take such active part in the offering, this demonstrating their faith in the company and Icelandair's firm position as a brand name. Exciting times are ahead for Icelandair which has presented ambitious goals for growth for 2007."

For further information contact:

Jón Karl Ólafsson, CEO of Icelandair. Tel. + (354) 505 0371
Einar Örn Ólafsson, Executive Director, Glitnir Corporate Finance.
Tel. + (354) 844 4534
Bjorn Richard Johansen, Managing Director, Glitnir Corp.
Communications, Tel: + 4747 800 100.

Icelandair Group is a holding company with 13 independent operating companies in flight operations and tourism. The company has 2,700 employees and its turnover this year is estimated at ISK 54 billion. The company's operations are divided into 3 main sectors; international scheduled flights, charter flights in intentional markets and tourism in Iceland. The backbone of operations is Icelandair's international flights which are based on connect flights between Europe and America, focusing on Iceland. The company flies to 22 destinations on both sides of the Atlantic and transported about one and a half million passengers last year.

About Glitnir

The financial group Glitnir offers universal banking and is a leading niche player in three global segments; seafood/food, sustainable energy, and offshore supply vessels. Glitnir consider Iceland and Norway as home markets. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of a bank in Luxembourg (Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, and 50.1 percent of Union Gruppen. Glitnir's subsidiary BNbank in Norway recently acquired 45 per cent of the shares in Norsk Privatøkonomi ASA, an independent financial advisory company with 12 branches in key areas of Norway). In Sweden, Glitnir owns the leading Swedish brokerage firm Fischer Partners. Glitnir operates branches in London and Copenhagen and representative offices in Halifax, Canada and Shanghai, China. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced strong profits for the first nine months of 2006, with a return on equity after tax of 41.9 percent. For more information go to: (English), (Icelandic) or (Norwegian).

Further information about the Share Offering and the company are found in the prospectus which can be accessed at and

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