A new Landsvirkjun Board of Directors held its first meeting following the change in company ownership.

Rannveig Rist and Friðrik Sophusson today signed an agreement which extends until the middle of next year the declaration of intent by Alcan and Landsvirkjun to prepare an agreement on supplying electricity for an expansion to the aluminium plant in Straumsvík.

Minister of Finance Árni Mathiesen; Minister of Industry and Commerce Jón Sigurðsson; the Mayor of Reykjavík, Vilhjálmur Þ. Vilhjálmsson; and the Mayor of Akureyri, Kristján Þ. Júlíusson, signed an agreement yesterday on the Icelandic state purchasing the shares held by the municipalities of Reykjavík and Akureyri in Landsvirkjun.

Landsvirkjun and the Red String Theatre Company have signed an agreement on subsidising a theatrical production called "Best in the World".

Landsvirkjun has operated on the basis of a company environmental policy ever since 1997. In connection with adopting the ISO 14001 environmental management standard, the company subjected its environmental policy to a review.

The filling of Hálslón reservoir started last Thursday. When the gates of the bypass tunnel were closed, the upper end of the river Jökulsá á Dal was gradually transformed into a reservoir.

Today, Landsvirkjun and the Icelandic/Polish Friendship Society signed a cooperation agreement which has the objective of promoting knowledge of Polish culture in Iceland and appreciation of multiculturalism in modern Icelandic society.

Landsvirkjun is underwriting the Icelandic Opera's production of Stravinsky's The Rake's Progress.

During the first six months of 2006, Landsvirkjun showed an operating loss of ISK 6.490 billion.

Landsvirkjun has recently worked on revising its profitability assessment for Kárahnjúkar Power Plant, the construction of which is now about 75% complete.

Landsvirkjun has issued bonds for 150 million euros, amounting to ISK 14.4 billion. This is under the company's framework agreement on European Mid-Term Notes.

On Alcoa's website in Brazil, information was recently posted about electricity prices for the Fjarðaál aluminium smelter, which is the smelter also associated with the name Reyðarál and located in the fjord of Reyðarfjörður, East Iceland). The Brazilian website stated that the price was USD 15 per MW. Actually, however, the base price is considerably higher.

The President of Iceland, Ólafur Ragnar Grímsson, laid the cornerstone of Kárahnjúkar Power Plant today, assisted by six children who had completed outstanding projects on the subject of electricity.

Last January, Landsvirkjun achieved the certification of its quality system. This certification marks a stage in the company's many years of work on quality issues.

Landsvirkjun, Landsnet (IceGrid) and RARIK (Iceland State Electricity) signed an agreement last week with the Icelandic Association for Search and Rescue, ICE-SAR, concerning a variety of actions and emergency assistance.

Landsvirkjun's annual consultation meeting today at Grand Hotel, Reykjavík

Norðurál (Nordic Aluminium) has reached an agreement with Landsvirkjun on the company's selling Norðurál short-term power during the period of 2006 to 2008.

On 10 March 2006, the company Orkusalan ehf. was established. The owners are three energy companies, RARIK (Iceland State Electricity), Westfjord Power Company and Landsvirkjun.

Landsvirkjun and Alcan today signed a declaration of intent on negotiating an energy sale contract to supply an expansion of the Straumsvík aluminium smelter.

Landsvirkjun has agreed with Alcan in Iceland to commence exclusive discussions on a power contract for enlargement of the Straumsvík aluminium plant. The discussions are expected to conclude before the end of this year.