Eimskip reaches agreement with bond holders

- Important support whilst the Eimskip Group reorganizes and works on
refinancing 
- 95% of bond holders have already signed
- Sales of Eimskip's assets on course; will strengthen the Group's financial
status 
- Eimskip's transport business in running well, daily operations and customer
service ensured 

HF Eimskipafelag Islands reached an agreement with its bond holders in
categories HFEIM 071 and HFEIM 072. Eimskip has already finalized agreements
with 95% of bond holders, and negotiations with the remaining 5% are ongoing. 

Gylfi Sigfusson, Eimskip's CEO and President commented: “As previously stated,
Eimskip is working on the sales of assets, and degree of stability is required
for the process. Eimskip's management is now working on a reorganization of the
Group, as well as its refinancing - this support from the bond holders is an
important step in that direction. By giving Eimskip this space, the Group's
assets are being protected, thus limiting the risk to creditors. Eimskip's
transport business is in a fine state, its daily operations and customer
services are as strong as ever. The sales of assets are going according to
plans, and will strengthen the Group's equity status.” 

In the above stated bond categories, Eimskip bound itself upon issuing to
ensure that its equity ratio would not fall below 25%, from the 3Q 2008
financial results. It has now become clear that Eimskip cannot ensure that
goal, and has negotiated with 95% of its bond holders to waive their right to
default, in the event that the ratio is lower than the target ratio until the
due date. Eimskip now has authority to postpone the due dates of the bonds
until June 30th 2009, or if earlier 30 days after the sales of Eimskip's cold
stores operations in North-America. Furthermore, all interests' payment be
postponed until the due date, and added to the capital. The bonds marked HFEIM
071 have a face value of ISK 1.500 million, and HFEIM 072 ISK 8.000million.