Sjá enska frétt: Spölur ehf has implemented the International Financial Reporting Standards(IFRS) from 1 October 2006, which conforms to the requirements made of companies which have its security bonds listed on European stock exchanges. This Press Release is intended to inform the market about the effect that these changes will have on financial reporting from 2007. There are two items in particular that will effect the finances and performance of Spölur ehf as a result of implementing IFRS: impact of using the effective interest method and methods of depreciating properties, plants and equipment have changed. Overall, the profit from operations for year ended 30 September 2006 becomes 568.1 million ISK, which was previously shown as 570.1 million. As a percentage of sales, net profit becomes 0,84%, compared with 1,22%. Net profit for year ended 30 September 2006 decreased from 12.1 million ISK to 8.3 million. With the change, the company's equity increased on 1 October 2006 by about 35.7 million ISK. On 30 September 2006 it became 452.4 million ISK, while in the previous accounting method equity was 416.7 million. The equity ratio therefore increased from 8.2% to 8.9%. The figures that are published here have been audited. The following is a more detailed account of specific items: See attachment. Borrowings - net of transaction cost In accordance with IAS 39, borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective method. The effect of changes to the income statement in 2006 is such that charged transaction cost is 2.6 million ISK. Borrowings in revalued financial statements of 30 September 2006 includes the net of transaction cost which will be recognised over the period of the borrowings using the effective interest method. Depreciation of fixed assets Methods for depreciating properties, plants and equipment have changed in that they are depreciated during their estimated lifetime/service life down to their residual value. The depreciation base will therefore be the difference between the purchase price and the estimated residual value, instead of purchase price. The effect of this is that depreciation, particularly tunnel, increases in the revalued financial statements from 220 million ISK to 222 million. For further information please contact Gylfi Þórðarson, Spölur ehf Chief Executive Officer in telephone +354 4335910.