APPENDIX 5 (a) Dividend Policy

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					                                        APPENDIX 5 (a)
                                        Dividend Policy
The dividend policy of Alfesca hf. is to optimise the return on assets entrusted to the Company and
ensure that its shareholders benefit from the successful growth and anticipated strong cash flow
of the business whilst providing sufficient funds for investment in future growth. Alfesca’s policy is
to maintain a dividend “pay-out” ratio in the range of 30 - 40% of its net income.

As part of its dividend policy, Alfesca hf will provide a dividend reinvestment plan (DRIP). Under
the plan, Alfesca hf will offer shareholders the opportunity to reinvest their net dividends to
receive shares rather than their cash entitlement. The objective of the DRIP is to provide a
convenient means for shareholders to increase their holding in Alfesca hf at competitive rates for
the benefit of both the company and its shareholders.

Approved by the board of directors.

18 November 2008