Kaupthing and SPRON to initiate merger discussions

Kaupthing Bank hf. ("Kaupthing") and Sparisjódur Reykjavíkur og
nágrennis hf. ("SPRON") have decided to enter negotiations on a
possible merger between the companies. Negotiations are expected to
be completed in approximately four weeks.
 
Any merger of the companies is subject to the approval of a SPRON
shareholders' meeting, the Board of Directors of Kaupthing, the
Icelandic Financial Supervisory Authority, the Icelandic Competition
Authority and the companies' creditors.
 
For further information please contact Ingólfur Helgason, CEO of
Kaupthing Bank in Iceland, tel: +354 444 6121.
 
About Kaupthing Bank
Kaupthing Bank is a Northern European bank offering integrated
financial services to companies, institutional investors and
individuals. These services include corporate and retail banking,
investment banking, capital markets services, treasury services,
asset management and comprehensive wealth management for private
banking clients.
 
The Bank operates in all of the Nordic countries (Denmark, Finland,
Iceland, Norway and Sweden) and in 6 countries in mainland Europe
(the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of
Man), as well as the US, the Dubai International Financial Centre
(DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing
Bank operates under the name FIH Erhvervsbank. As of 31 December 2007
the number of full-time equivalent positions was 3,334 at Kaupthing
Bank and its subsidiaries. www.kaupthing.com