Negotiations between Kaupthing and SPRON continue

Kaupthing Bank hf. SPRON have decided to extend their negotiations on
a possible merger between the two companies. Negotiations are going
well and the outcome will be announced as soon as it has been
reached.

A merger is subject to the approval of SPRON shareholders,
Kaupthing's Board of Directors, the Icelandic Financial Supervisory
Authority, the Competition Authority and the companies' creditors.

For further information please contact Ingólfur Helgason, CEO of
Kaupthing in Iceland, tel: 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 March 2008
the number of full-time equivalent positions was 3,324 at Kaupthing
Bank and its subsidiaries. www.kaupthing.com