Related Party Transactions and Outside Related Director Information

deCODE genetics, Inc. (DCGN)

4/7/2006 Proxy Information

Covington & Burling, a law firm of which Mr. Beery serves as Senior Of Counsel, provided legal services to us during the fiscal year ended December 31, 2005 (for which we paid approximately $5,000) and we expect the firm to continue to provide legal services to us in 2006.

In 2005, deCODE employed: (i) Ari Karason, Dr. StefanssonŐs son, as a research scientist and paid him in Icelandic kronas the equivalent of $78,263 for his services; and (ii) Helga Stefansdottir, Dr. StefanssonŐs sister, as the office manager of Encode ehf. and paid her in Icelandic kronas the equivalent of $73,462 for her services. Compensation indicated in the foregoing sentence represents the aggregate dollar value of the compensation paid to the individual based on the effective krona to dollar exchange rate on each day payment was made. deCODE continues to employ these individuals at the same or similar salaries (although the dollar value of salaries paid in kronas is subject to fluctuations in the krona to dollar exchange rate).