CORRECTION: XL Leisure Group's refinancing not ensured

 | Source: Hf. Eimskipafélag Íslands Hf. Eimskipafélag Íslands 

- Sigificant investors in place to support Eimskip - 

As previously announced, Hf. Eimskipafelag Islands (“Eimskip”) (OMX: HFEIM)
guaranteed a loan as part of its divestment of XL Leisure Group in 2006.
According to information from XL, a process of refinancing is underway at that
company. Without making any assumptions in relation to the process, the Board
of Eimskip wishes to underline that, given the conditions in the European
aviation market and information about the operation of XL, the likelihood that
the loan guarantee will fall on Eimskip has increased. 

Investors to join Eimskip

In the event that Eimskip is required to make payments under its XL loan
guarantee, a group of significant investors led by Bjorgolfur Gudmundsson and
Bjorgolfur Thor Bjorgolfsson will acquire the claim and delay its payment. 
Furthermore, it is expected that any such claim will subordinate to other
claims on Eimskip. Through these actions, the impact of the loan guarantee
would be limited on Eimskip's operation. The total amount of the loan guarantee
is EUR 207 million 

Gylfi Sigfússon, CEO of Eimskip:
“A successful refinancing of XL is an important goal in our aim of removing the
potential impact of previously-made loan guarantees against Eimskip's balance
sheet and we hope, of course, that the XL refinancing will be completed
successfully.  However, at the same time we also want to point out that as with
any such transaction there is no certainty and it may prove to be more
difficult than expected.  Even in such circumstances there is now a mechanism
in place for significant, well-respected investors to then assume the loan
obligation, which the Board of Eimskip believes is very positive. 

As we have previuosly announced, Eimskip's long-term goal is to bring our
equity ratio to over 25%. To achieve this goal, we are working on several
internal projects in order to lower Eimskip's debt and strenghten its equity
ratio.” 


For further information:

Gylfi Sigfusson
CEO of Eimskip
Tel: +354 525 7202