Islandsbanki hf




As Agent Bank, please be advised of the following rate determined on: 28-Feb-2007

Issue               : Islandsbanki hf - Series 186
                      USD 75,000,000.00 Step UP Callable FRN Due 2 Mar 2015
ISIN Number         : XS0213269094
Common Code/        : 21326909
144A ISIN
Issue Nomin     USD : 75,000,000.00
Period              : 02-Mar-2007 to 04-Jun-2007          Payment Date 04-Jun-2007
Number of Days      : 94
Rate                : 5.74813
Denomination USD    : 1,000.00          75,000,000.00

Amount Payable
per Denomination    : 15.01             1,125,675.46

JPMorgan Chase Bank
Rate Fix Desk                           Telephone 44 (0) 1202 32 8226
Institutional Trust Services           Facsimille 44 (0) 1202 34 7939



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