Reference is made to the press release by Icelandair Group (the “Company”) dated 30 November 2018 regarding a Notice of Written Procedure

The Company has on the date hereof given instructions to Nordic Trustee & Agency AB (publ), being the agent under the bonds carrying ISIN NO0010776982, to initiate a Written Procedure in order to request that the bondholders vote in favor of a long-term solution which includes, inter alia, certain amendments, including a partial redemption, waivers of certain Covenants and changes to the call structure as further described in the Notice of Written Procedure. Note that there are certain revisions to the repurchase and call prices in the Written Procedure versus what was outlined in the press release dated 30 November.

The Notice of Written Procedure is available on the Company's website (www.icelandairgroup.is) and on Stamdata (www.stamdata.com).

DNB Markets is acting as the Company’s financial adviser