Landsbankinn hf. : Landsbankinn acquires own shar

As stated in an announcement from the Board of Directors of Landsbankinn on 15 September 2016, the Board has decided to avail itself of authorisation granted by the Bank's AGM on 14 April 2016, to buy back own shares. The buy-back programme is divided into three acquisition periods and buy-backs may amount to a maximum of 480 million shares, or 2% of issued stock.

On 30 September 2016, Landsbankinn announced that it had acquired own shares during the first acquisition period, extending from 19 September 2016 up to and including 30 September 2016. On 9 December 2016, Landsbankinn announced that it had acquired own shares during the second acquisition period, extending from 31 October 2016 up to and including 9 December 2016.

The third acquisition period extends from 13 February 2017 up to and including 24 February 2017.

Shareholders wishing to avail themselves of Landsbankinn's offer to acquire shares from shareholders during the third acquisition period should notify the Bank using the relevant form, available on the Bank's website. Also available on the Bank's website are instructions to shareholders wishing to sell shares during the third acquisition period. Shareholders will not receive letters with an offer from the Bank to purchase shares during the third acquisition period.

Notifications will be processed in the order they are received until the aforementioned limit is reached (480 million shares). Once the maximum has been reached, the programme will be terminated and no further notifications processed.

According to Landsbankinn's Annual Financial Statements for 2016, equity attributable to the Bank's shareholders amounts to ISK 251,204,319,726 and outstanding shares number 23,648,168,510. In accordance with the above, Landsbankinn offers to purchase each share at the price of ISK 10,6226 per share during the third repurchase period.

Once the third acquisition period ends, Landsbankinn will disclose the number of sold shares and whether the CEO or managing directors of the Bank sold shares under the buy-back programme.

For further information contact:

Rúnar Pálmason, Public Relations,  pr@landsbankinn.is , tel: +354  410 6263 / 899 3745

Hanna Kristín Thoroddsen, Investor Relations,  ir@landsbankinn.is , tel: +354  4107310