Icelandair Group hf. entered into an agreement with Íslandsbanki hf. for market making of shares issued by the Company traded on the Nasdaq Iceland Regulated Market.

The purpose of the agreement is to maintain the liquidity of Icelandair's shares, create a market price and the price formation of the shares in the most efficient and transparent manner. The agreement stipulates that Íslandsbanki shall submit daily bids and offers to buy and sell Icelandair?s shares in the trading system of the Icelandic stock exchange. Each bid and offer must be at least ISK 10,000,000 in nominal value, at a rate set by Íslandsbanki.

However, such bids shall not vary by more than 3% from the last transaction price. The bid-ask spreads shall be determined by reference to the stock exchange's price step table as it stands at any given time, so that the spread will be as close as possible to 1,5% but not less than 1,45%. Íslandsbanki shall, however, be permitted to present bid and sell offers with a lower price range, e.g. due to circumstances arising from the stock exchange's price step table.

If Íslandsbanki, in any single trading day, trades in shares of Icelandair, to be held in the trading book of Íslandsbanki, amounting to a total of ISK 60,000,000 in nominal value or more, the aforementioned obligations of Íslandsbanki regarding maximum bid-and-ask prices within that day shall be waived. If the price change in Icelandair?s shares within the trading day exceeds 5%, Íslandsbanki may increase the maximum spread to up to 3.0%. In addition, Icelandair has made adjustments to the market making agreement that it already has in place with Arion Banki as disclosed on 29 June 2023.

The agreement now stipulates that each bid and offer must be at least ISK 10,000,000 in nominal value, at a rate set by Arion banki, an increase from ISK 5,000,000 in the original agreement. Other conditions of the agreement are unchanged. The agreements otherwise consider EU Regulation 2017/578 of the European Commission of 13 June 2016 on regulatory technical standards regarding requirements for market making agreements and schemes as provided for in Article 12 of Article 48 of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments which are legally valid in Iceland pursuant to the provisions of Act No.

115/2021 on Markets in Financial Instruments. The agreements are indefinite and will become effective on 2 April, 2024. Each of the parties may terminate their respective agreement by giving 14 days?

notice to the other party at any given time.