At its meeting today, the Board of Directors of Exista hf. agreed to commence discussions with a private liability company owned by Agust Gudmundsson and Lydur Gudmundsson, concerning Exista's purchase of all share capital in Kvakkur ehf., and subsequently exercise the authorisation, granted by the extraordinary shareholders' meeting of 30 October 2008, to increase share capital in Exista by 50 billion shares in order to pay for the shares in Kvakkur ehf. The purpose of Kvakkur ehf. is to preserve cash. The above discussions involve Agust and Lydur Gudmundsson's contribution of cash from Kvakkur ehf. to Exista in exchange for new shares in the Company. The aim of the discussions is to fortify Exista's equity base and enhance its cash position, thus strengthening the Company's position in the discussions currently underway with financial institutions and creditors. In addition, the Board of Exista agreed to call a shareholders' meeting no later than 31 December 2008. At that meeting, the Board will present a motion to write down the Company's share capital. The date and agenda for the shareholders' meeting will be announced at a later time. Enquiries: Exista hf. Group Communication Sigurdur Nordal Managing Director +354 550 8620 ir@exista.com