COLUMBIA, MD, July 26, 2007 - Under the new Open Skies agreement between the governments of Canada and Iceland, Icelandair has agreed to add winter service to its Halifax operations in 2008. The market situation will determine the frequency of flights. Icelandair, the flag carrier of Iceland, currently offers service to and from Halifax through September 24, 2007 and plans to reinstate service in May 2008.

Icelandair will add Toronto to the route network beginning May 2008, offering 5-7 flights per week with a flying time of approximately five hours to Iceland. Additional Canadian gateways are under consideration for future development.

Icelandair flights connect in Iceland to other European cities, including Copenhagen, Oslo, Bergen, Stockholm, Gothenburg, Helsinki, Paris, Frankfurt, Munich, Berlin, Amsterdam, London and Glasgow. Today Icelandair operates 160 flights per week to 25 cities in North America and Europe via its hub in Reykjavik.

Travel information is available from Icelandair at (800) 223-5500, www.icelandair.ca and www.icelandair.com.