Strong internal growth and solid operations January to September 2007 Árni Pétur Jónsson, CEO Ólafur Þór Jóhannesson, CFO

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 1 31 October 07 Main points Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 2 31 October 07 Main points Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 3 31 October 07 Two segments Electronic communications Information technology (IT)

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 4 31 October 07 Good operational results in the quarter RevenuesISK 5,3 million » internal growth electr.communications18% » internal growth IT11% RevenuesISK 15,3 million » internal growth elect. communications19% » internal growth IT11% EBITDA ISK million » 20% growth (from 06, pro forma) EBITDAISK million » 9% growth (from 06, pro forma) LossISK million Cash from operationsISK 750 million Current ratio 1,6 ProfitISK million Cash from operationsISK million Negative effect of Hands Holding ISK 1,1 million Net foreign exchange loss ISK 0,6 million Reduction of guarantees from ISK 7,5 million to ISK 2,7 million 3rd quarter 07January - September 07

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 5 31 October 07 A few good milestones » Vodafone: Two important agreements in Q3 -Glitnir -FS net » Web solutions company INNN acquired and merged with Eskill in Q3 » Skýrr: Agreement with RSK renewed (until 2011) » Broadcasting in High Definition on Digital Ísland’s distribution network -First time in Iceland and very well received » Two companies acquired -LandsteinarStrengur -HugurAx TEYMI OMX15

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 6 31 October 07 Good internal growth Revenues (in ISK million) 12%15%18% (growth compared to same period 06) 15% internal growth of revenues Jan-Sept compared to same period 2006 Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 7 31 October 07 Good internal growth ELECTR.COMMUNICATIONS Revenues (in ISK million) 22%19%18% (growth compared to same period 06 ) 19% internal growth of revenues Jan-Sep compared to same period 2006 Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 8 31 October 07 Good internal growth IT Revenues (in ISK million) 10%13%11% (growth compared to same period 06) 11% internal growth of revenue Jan-Sept compared to same period 2006 Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 9 31 October 07 Growing EBITDA contribution margin in Q3 mkr% 20% growth from Q3 06 Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 EBITDA contribution margin ; ELECTR.COMMUNICATIONS mkr% Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 EBITDA contribution margin ; IT mkr% Amounts for Q are pro forma.

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Revenues and EBITDA per segment Jan-Sep 2007

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Main ponts Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Market analysts’ forecasts for Q3 *Taking into consideration loss of ISK 1,1 million due to Hands Holding. (in ISK million) LandsbankiGlitnirKaupþingAverage 3 qtr Teymi Sales EBITDA EBITDA %20,9%21,4%21,8%21,4%21,3% EBIT Profit (loss) *

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Income Statement (in ISK million) 1 qtr 072 qtr 073 qtr 07Jan-sep 07 Sales Cost of sales Gross profit Other income Operating expenses EBIT Net finance income (expense) Share of profit (loss) of associates Profit (loss) before tax Income tax Profit (loss) from continuing operations Discontinued operations (Securitas)493 Profit / (loss) EBITDA

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Balance Sheet ; assets (in ISK million) Change from 06 Operating assets Intangible assets Share in Hands Holding and claim Other non-current assets Total non-current assets Inventory Short tern receivables Cash and cash equivalents Total current assets Total assets

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Balance Sheet ; equity and liabilities » Results of the period, increase in share capital, purchase of own shares (ISK 0,6 billion) and put options (ISK 0,4 billion) have influence on equity » Interest bearing liabilities minus cash and cash equivalents amount to ISK 17 billion (ISK 16,1 billion at the end of June 2007) » Equity ratio is 25% at the end of September 2007 » Current ratio is 1,6 at the end of September 2007 (in ISK million) Change from 06 Equity Total non-current liabilities Total current liabilities Total liabilities Total equity and liabilities

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Statement of Cash Flows s (in ISK million) 1 qtr 072 qtr 073 qtr 07 Jan-sep 07 Net cash from operating activities Acquisition of property, plant and equipment Acquisition of intangible assets Proceeds from sale of subsidiaries Other investing activities Net cash from (used in) investing activities Proceeds from sale of new shares Short term borrowings and obligations Other financing activities Net cash from (used in) financing activities Net increase (decrease) in cash Translation difference-4512 Cash and cash equivalents at 1 January Cash and cash equivalents at 30 September

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 The Big Picture is a clear focus ; financial impact LandsteinarStrengur & HugurAx » Purchase price -Share in Hands Holding -cash ISK million (cash and new loans) » Shares: book value of ISK 4,5 billion » Recorded loss due to Hands Holding ISK 1,1 billion in 3Q » Teymi’s ratios (as at 1 October 07) -Equity ratio 23% -Current ratio 1,4 » 200 employees » estimated turnover ISK 2,3 billion in 2007 » estimated EBITDA ISK 350 million Hands Holding » 14,5% share valued at ISK 101 million » guarantees ISK 2,7 billion

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Main points Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Telecom Telecom Web Hosting Web Solutions Business Systems Consultancy Integration & Solutions Integration & Solutions Equipment The Big Picture is a clear focus LandsteinarStrengur & HugurAx Industries & customers » Financial Institutions ;Glitnir, Kaupþing, Landsbankinn, Straumur, Askar Capital » Governm. Agencies ;RSK, Fjársýsla ríkisins, LSH, TR, þjóðskrá, launabókhald ríkisins » Retail and Services ;Hagar, Kaupás, Samkaup, Húsasmiðjan, Byko, N1, Olís, Skeljungur

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October Future prospects » extend operations to rural areas » roll-out of a long-range GSM system » 3G » extend operations in web hosting » services to the banking industry » web solutions and integration 08 Rev. EBITDA % 0706 Rev. EBITDA % 0706 Telecom IT

January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson October 07 Questions & Answers