Iceland NIC

Between 1903 and 1965 numeral cancels, known as Numeral-in-Circle ( NIC ), were used in the smaller icelandic towns. The first 200 numbers were delivered from Kopenhagen in 1903, and the numbers 1 - 173 were distributed in 1903. This was done by giving the number 1 to a town east of þhorlákshöfn and the others counterclockwise around the island until 173 þhorlákshöfn.
These new cancels not only replaced the crown cancels but where also distributed to new postal stations. The numbers 174 to 300 were distributed between 1905 and 1945 where needed. In the total 62 years of use some cancels changed town, and some towns even changed name or disappeared. Therefore it is sometimes not possible to determine the town where it was used ( only via the print date of the stamp ).
The higher numbers which means the newer ones are usually rare, more about this in identification. This is mainly because these are small towns that did not get a post office until the 30'ties.