There, they contacted some musicians and started playing with Þeyr, which was an accomplished new wave group not only in Iceland, but in Scandinavia as well.
By 1982, Þeyr's lineup consisted of singer Magnús Guðmundsson, guitarists Guðlaugur Kristinn Óttarsson and Þorsteinn Magnússon, bassist Hilmar Örn Agnarsson, and drummer Sigtryggur Baldursson.
However, Þorsteinn Magnússon left the band to begin his own solo project, Stanya, soon releasing an album titled Líf.
In 1983, Þeyr and Jaz Coleman formed a group called Iceland, but later the name was changed to Niceland by guitarist Guðlaugur Óttarsson.
The group was dissolved after the recording sessions because Jaz had problems with alcohol and the band decided to write their own songs.