Icelandair: New Market Making Agreement

Icelandair Group hf. (“Icelandair”) has entered into an agreement with Arion banki hf. for market making of shares issued by the Company traded on the Nasdaq Iceland Stock Exchange. The purpose of the agreement is to maintain the liquidity of Icelandair's shares, create a market price and the price formation of the shares in the most efficient and transparent manner.

The agreement stipulates that Arion banki shall submit daily bids and offers to buy and sell Icelandair’s shares in the trading system of the Icelandic Stock Exchange. Each bid and offer must be at least ISK 5,000,000 in market value of the issuer, at a rate set by Arion banki. However, such bids shall not vary by more than 3% from the last transaction price. The bid-ask spreads shall be determined by reference to the stock exchange's price step table as it stands at any given time, so that the spread will be as close as possible to 1,5% but not less than 1,45%. Arion banki shall, however, be permitted to present bid and sell offers with a lower price range, e.g. due to circumstances arising from the stock exchange's price step table.

If Arion banki is to trade in shares of Icelandair, which will be held in the trading book of Arion banki, amounting to a total of ISK 40,000,000 in nominal value, the aforementioned obligations of Arion banki regarding maximum bid-and-ask prices within that date shall be waived. If the price change in Icelandair’s shares within the trading day exceeds 5%, Arion Bank may increase the maximum spread to up to 3.0%. If the price change in Icelandair’s shares within the trading day exceeds 10%, Arion Bank may increase the maximum spread to up to 4.5%.

The agreement otherwise takes into account EU Regulation 2017/578 of the European Commission of 13 June 2016 on regulatory technical standards regarding requirements for market making agreements and schemes as provided for in Article 12 of Article 48 of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments which are legally valid in Iceland pursuant to the provisions of Act No. 115/2021 on Markets in Financial Instruments. The agreement is indefinite and will become effective on 30 June, 2023. Each of the parties may terminate the agreement by giving a 14 days’ notice to the other party at any given time.