Icelandair Group hf. financial restructuring completed

Icelandair Group hf.
announced on 14 and 15 June 2010 that the Enterprise
Investment Fund (EIF) and
the Pension Fund of Commerce (PFC) had entered into a
binding agreement with
the Company to the effect that the two funds would
invest in Icelandair Group
for ISK 4 billion at a share price of 2.5. In the
agreement EIF undertook to
contribute ISK 3 billion, thereby acquiring 1.2
billion new shares in the
Company. The PFC undertook to contribute ISK 1
billion, thereby acquiring 400
million new shares in the Company. 

The agreements were concluded with the
following conditions:
+	Positive results of Icelandair Group due
diligence
+	Exemption of the EIF by the Financial Supervisory Authority (FME)
from an    
         obligatory take-over of the Company 
+	Achievement by
Icelandair Group hf. of a minimum of ISK one billion in market
         value
of new shares from other investors 

All of the above conditions have been
met, and investors have subscribed to a
total of ISK 5.5 billion at market
value in new share capital, which
corresponds to 2.2 billion new shares in
Icelandair Group hf. 

The agreement assumes the conversion by Icelandair's
largest creditors of debts
in the amount of ISK 3.6 billion into shares based
on a share price of 5 per
share, which corresponds to a subscription to 720
million new shares.  The
total increase in share capital will thus amount to
2.92 million new shares at
nominal value. 

Icelandair Group hf. plans
furthermore to raise approximately ISK 2.5 billion
in additional share
capital. The timing and structure of that offering will be
disclosed later.


The financial restructuring of the Company will reduce its debt by over ISK
10
billion through the transfer and sale of certain assets which are not a
part of
the Company's core business, as announced in a notice to the Nasdaq
OMX Iceland
last 25 March.
 
For further information, please
contact:
Björgólfur Jóhannsson CEO, Icelandair Group, tel. +354-896-1455
Bogi
Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801