At a shareholders‘ meeting of LBI ehf. (the “Company”), which the Winding-up Board held today, 19 February 2016, in accordance with the composition agreement of the Company (the “Composition Agreement”) and based on the statutory authority of the Winding-up Board pursuant to the second sentence of paragraph 4 of Article 101 of the Act on Financial Undertakings No. 161/2002, c.f. paragraph 3 of Article 103 a of the same Act, new articles of association (the “Articles”) were adopted by the Company. Additionally new share capital was issued (the “Shares”) by way of conversion of composition claims, the existing capital fully written down and the Company changed from a public limited company to a private limited company. The new Articles along with ancillary documentation have been submitted to the Directorate of Internal Revenue, as law provides.

In accordance with point III.8 of the Composition Agreement, Composition Creditors are hereby notified that delivery of Shares and issuance of Bonds (together the “Securities”) shall be postponed with respect to the dates set out in points III.5 and III.7 of the Composition Agreement. This postponement is mainly due to unanticipated delays in obtaining necessary authorisation for issuance of Securities in certain foreign jurisdictions, c.f. point IV.5 of the Composition Agreement.

The current estimation of the Winding-up Board is that delivery and issuance of the Securities can take place on 23 March 2016. Accordingly the Winding-up Board anticipates that the shareholders’ meeting called in accordance with point III.10 of the Composition Agreement, which will also be the Annual General Meeting for the Company, can take place on 14 April 2016. This estimation assumes that there are no further unanticipated delays, which cannot be ruled out as a possibility at this stage. Further information and invitation to the meeting will be published in due course.