1st place: Laglausir

2nd place: Bootlegs

3rd place: Bróðir Darwins

The following 20 bands competed: Batterí, Bootlegs, Bróðir Darwins, Brúðkaup Fígarós, Foli og flippararnir, Fretað í fótspor, Hestaleigan, Íslensk knattspyrna, Laglausir, Lalli og sentimetrarnir, Leiðtogarnir, Max, Neyðin, Sérsveitin, Stertimenni, Tens, Titanic, Trassarnir, Túrbó, and Vitringarnir.

Did You Know?

• The first-place winner received 50 hours at Hljóðaklettur, while the second-place winner received 30 hours at Bjartsýni and the third-place winner received 20 hours at Hljóðaklettur.

• The IME competition in 1989 was a collaborative effort between Tónabær and the radio station Bylgjan, similar to the previous year's competition.