Changes in the Board of Directors

Mr. Halldor Johannsson, chairman, and Mr. Bjarni H. Helgason alternate board member, have resigned from the board of directors, in accordance with the 4. paragraph of Art. 52 of the Act on Financial Institutions, which took effect on 1 April. The provision prevents employees of a party, which is closely related to another regulated entity, to take a seat on the board. Mr. Johannsson and Mr. Helgason are both employees of KEA, which has a qualifying holding in Sparisjóður Höfðhverfinga, a local savings bank. Mr. Eggert Arni Gislason, alternate member of the board, takes a seat on the board of directors in place of Mr. Johannsson and Mr. Gunnar Þ. Gislason vice chairman takes over as chairman of the board. Management and staff thank the departing board members, in particular the departing chairman, for their work on behalf of the Bank from its establishment.