The following news release is from the Iceland Stock Exchange

Article 19 of the Act on Activities of Stock Exchanges and Regulated OTC Markets, no. 34/1998, refers to the requirement that shareholders in publicly listed companies make a takeover bid to other shareholders provided that certain conditions are met; one such condition is that the ownership share exceed 50%. As AV Holdings share in IPC is 39.86%, it is not required by law to make such a takeover bid. As of 1 July 2003, however, amended legislation on securities transactions will enter into force; according to the provisions of this legislation, all shareholders who acquire more than 40% of shares in a company that is listed on a securities exchange will be required to make such a takeover bid to other shareholders.

On Monday, 19 May 2003, AV will publish a summary of the bid, wherein it will offer other IPC shareholders the opportunity to sell their shares at a price of ISK 3.69.