Iodine in AgBr behaves as an isoelectronic trap with the hole being bound first.The bound-exciton zero-phonon photoluminescence line is split by exchange into an A-line and a B-line separated by 0.1 meV. The Zeeman splitting at H = 80 kG is isotropic in agreement with iodine being a substitutional point-like impurity in AgBr. In the low-temperature limit optic and acoustic phonons contribute to the phonon side wing with nearly the same coupling strength. At temperatures below 10 K, up to n = 11 phonons are observed in the phonon side band. We present experimental evidence that these are due to the emission of n optic phonons which, for n > 3, are statistically independent. A multiphonon model which neglects the k dependence of transition rates is introduced; however, the model is useful only qualitatively, With increasing temperature the intensities of the zero-phonon line and of all optic phonon replicas are quenched with an activation energy of 1.66 meV while the acoustic-phonon-assisted emission remains visible. The latter is quenched only at higher temperatures by the ionisation of the electron. This process yields an ionisation energy for the bound exciton of 26 meV from which a binding energy of 20 meV for the free exciton is deduced.