Kaupthing Bank and NIBC determine not to proceed with the announced acquisition

Due to the current instability in the financial markets Kaupthing
Bank and NIBC have determined not to proceed with the announced
acquisition of NIBC by Kaupthing Bank. Relevant regulatory
submissions have been withdrawn and the share purchase agreement has
been terminated.

In light of this development, the proposed rights issue in Kaupthing
Bank in the first quarter of 2008 has also been cancelled.

Further information:
Hreidar Már Sigurdsson, Group CEO, tel. + 354 444 6105.
Jónas Sigurgeirsson, Chief Communications Officer, tel. + 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 thirteen 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 in Finland, Norvestia Oyj in Finland, Kaupthing New York,
Kaupthing Switzerland, Kaupthing Bank Belgium and Kaupthing Bank
Norge in Norway. The Bank also has activities in Isle of Man, the
United Arab Emirates (Dubai) and Qatar. As of 30 September 2007 thenumber of full-time equivalent positions was 3,190 at Kaupthing Bank
and its subsidiaries. www.kaupthing.com