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

2. 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

3. 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

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

5. 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 1.135 million » 20% growth (from 06, pro forma) EBITDAISK 2.944 million » 9% growth (from 06, pro forma) LossISK 1.187 million Cash from operationsISK 750 million Current ratio 1,6 ProfitISK 1.575 million Cash from operationsISK 2.060 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

6. 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 + 160 80 90 100 110 120 130 140 150 20.11.0620.2.0720.5.0720.8.07 TEYMI OMX15

7. 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 Q4 2006 are pro forma.

8. 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 Q4 2006 are pro forma.

9. 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 Q4 2006 are pro forma.

10. 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 Q4 2006 are pro forma.

11. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 10 31 October 07 EBITDA contribution margin ; ELECTR.COMMUNICATIONS mkr% Amounts for Q4 2006 are pro forma.

12. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 11 31 October 07 EBITDA contribution margin ; IT mkr% Amounts for Q4 2006 are pro forma.

13. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 12 31 October 07 Revenues and EBITDA per segment Jan-Sep 2007

14. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 13 31 October 07 Main ponts Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

15. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 14 31 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 Sales5.1965.2305.1705.1995.322 EBITDA1.0881.1201.1291.1121.135 EBITDA %20,9%21,4%21,8%21,4%21,3% EBIT691705 700699 Profit (loss)-907-1.178-1.187*-1.091-1.187

16. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 15 31 October 07 Income Statement (in ISK million) 1 qtr 072 qtr 073 qtr 07Jan-sep 07 Sales4.8125.1655.32215.301 Cost of sales-3.168-3.416-3.159-9.743 Gross profit1.6441.7492.1655.558 Other income30232173 Operating expenses-1.292-1.166-1.486-3.944 EBIT3826066991.687 Net finance income (expense)7301.087-7951.022 Share of profit (loss) of associates201-222-1.095-1.116 Profit (loss) before tax1.3131.471-1.1911.593 Income tax-204-3114-511 Profit (loss) from continuing operations1.1091.160-1.1871.082 Discontinued operations (Securitas)493 Profit / (loss)1.6021.160-1.187 1.575 EBITDA7851.0271.1352.944

17. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 16 31 October 07 Balance Sheet ; assets (in ISK million) 30.9.200730.6.200731.12.2006Change from 06 Operating assets4.8344.2694.981-147 Intangible assets17.51117.48020.064-2.553 Share in Hands Holding and claim1.3532.4485.303-3.950 Other non-current assets7057041.244-539 Total non-current assets24.40324.90131.592-7.189 Inventory469433497-28 Short tern receivables4.8824.8244.184698 Cash and cash equivalents4.0364.9556333.403 Total current assets9.38710.2125.3144.073 Total assets33.79035.11336.906-3.116

18. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 17 31 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) 30.9.200730.6.200731.12.2006Change from 06 Equity8.30210.3893.8784.424 Total non-current liabilities19.57018.66322.266-2.696 Total current liabilities5.9186.06110.762-4.844 Total liabilities25.48824.72433.028-7.540 Total equity and liabilities33.79035.11336.906-3.116

19. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 18 31 October 07 Statement of Cash Flows s (in ISK million) 1 qtr 072 qtr 073 qtr 07 Jan-sep 07 Net cash from operating activities2011.1097502.060 Acquisition of property, plant and equipment-328-86-458-872 Acquisition of intangible assets-123-161-6-290 Proceeds from sale of subsidiaries2.57249783.077 Other investing activities157-200-4-47 Net cash from (used in) investing activities2.27850-4601.868 Proceeds from sale of new shares2.5641.20603.770 Short term borrowings and obligations-1.903-735-538-3.176 Other financing activities-337-113-671-1.121 Net cash from (used in) financing activities324358-1.209-527 Net increase (decrease) in cash2.8031.517-9193.401 Translation difference-4512 Cash and cash equivalents at 1 January6333.4324.954633 Cash and cash equivalents at 30 September3.4324.9544.036

20. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 19 31 October 07 The Big Picture is a clear focus ; financial impact LandsteinarStrengur & HugurAx » Purchase price -Share in Hands Holding -cash ISK 3.458 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

21. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 20 31 October 07 Main points Income Statement, Balance Sheet and Statement of Cash Flows Direction Questions & answers Contents

22. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 21 31 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

23. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 22 31 October 07 08 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

24. January – September 2007 ∙ Árni Pétur Jónsson & Ólafur Þór Jóhannesson 23 31 October 07 Questions & Answers