Kaupthing Acquires Offshore Deposit-taking Business in the Isle of Man

Kaupthing Bank hf. ("Kaupthing") has agreed with Derbyshire Building
Society ("Derbyshire") to acquire the entire issued share capital of
Derbyshire's offshore deposit-taking business The Derbyshire (Isle of
Man) Limited ("Derbyshire Offshore").

Derbyshire Offshore is a specialised operation that offers a targeted
range of fixed and variable rate sterling deposit accounts for its
retail and business customers. At the end of the third quarter 2007,
it had total deposits of over £320 million (EUR 460 million). The
transaction will have an insignificant effect on the overall
operations of the Kaupthing Group. Following completion of the
transaction, which is expected to take place before the end of the
year, Derbyshire Offshore will be integrated into Kaupthing's
existing Isle of Man operation. Kaupthing's strategy for the business
is to grow deposits and cross sell additional products.

Gudni Adalsteinsson, Chief Treasurer: "This acquisition is in line
with Kaupthing's strategy to increase the level of deposits within
the bank. Derbyshire's Offshore business is very efficiently run and
will be a great addition to our current operations in the Isle of
Man."
For further information:
Gudni Adalsteinsson, Chief Treasurer, + 354 444 6126
Jonas Sigurgeirsson, Chief Communications Officer, + 354 444 6112

About Kaupthing Bank
Kaupthing Bank offers comprehensive commercial and investment banking
services to individuals, companies and institutional investors. The
Bank is a leading player in all the main areas of the Icelandic
financial market, and in addition to Iceland, the Bank's key markets
are Denmark and the United Kingdom. The Bank focuses on the growth
and development of its international activities and aims to be one of
the leading investment banks in northern Europe.

Kaupthing Bank operates in twelve countries with its headquarters
located in Reykjavík. The Bank's main subsidiaries are FIH
Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United
Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing
Bank Oyj in Finland, Norvestia Oyj in Finland, Kaupthing New York,
Kaupthing Asset Management in Switzerland and Kaupthing Norge in
Norway. The Bank also has activities in the United Arab Emirates
(Dubai) and Qatar and operates a branch in the Faroe Islands. As of
30 September 2007 the number of full-time equivalent positions was
3,190 at Kaupthing Bank and its subsidiaries.