Kaupthing and SPRON have been negotiating a possible merger between the companies in the past four weeks. Negotiations have not been completed within the timeframe expected but are still ongoing. The conclusion to the negotiations will be reported on as soon as possible. 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 Guðmundur Hauksson, CEO of SPRON, tel: +354 550 1213.