Icelandair Group has reached an underwriting agreement with Íslandsbanki and Landsbankinn (“the Underwriters”) in relation with the upcoming offering of new shares in the Company (the “Offering”). According to the agreement, the Underwriters will agree separately, to collectively purchase from the Company, new shares in the Offering at the offer price for a total consideration of up to ISK 6,000 million which will be divided in equal proportions between the Underwriters. The agreement is conditioned on a minimum participation by investors in the Offering of ISK 14,000 million. Further information will be included in the Company’s Prospectus.