Notice to the Iceland Stock Exchange

11/26/01

26 November 2001

Icelandic

The sale of shares in Landssími Íslands to a core investor is proceeding well. Following the receipt of seven non-binding offers at the end of last month, the Executive Committee on Privatisation decided, on the advice of PricewaterhouseCoopers, to invite three participants to continue and submit a binding final offer at the end of this month. The participants have in recent days and weeks put a great deal of work into acquainting themselves further with the operation of Landssími Íslands and preparing their offers.

A request has now been made by the participants in this final stage of the sale process for an extension of the deadline for final offers, and the Executive Committee on Privatisation has decided to extend the deadline to 7 December.