Glitnir Bank issues profit warning

Press release

Reykjavik, 1 October 2008  - The Board of  Directors of Glitnir  Bank
have on 29 September 2008 agreed to call for a shareholders'  meeting
at the  earliest possible  date. There  the government  of  Iceland's
offer to buy 600 million euros  worth of new equity in Glitnir  which
will amount to a 75% share in  the Bank. As a result Glitnir's  stock
price fell by  71% when  trading commenced  yesterday, September  30.
This decrease in  value on top  of a 23%  drop in the  ICEX15 in  the
third quarter will  result in increased  impairments with  subsequent
negative impact on Glitnir's earnings in the third and fourth quarter
of 2008. At this point in time the scale of the impact is not  clear.
However if the shareholder's meeting votes to accept the government's
offer to increase the Bank's equity by 84 bn ISK Glitnir will be very
well equipped to meet these increased impairments.




For further information contact:

Bjørn Richard Johansen, Managing Director of Global Corporate
Communication, brj@glitnir.no mobile +47 47 800 100

Sigrun Hjartardóttir, Head of Investor Relations, sihj@glitnir.is ,
mobile + 354 844 4748

Mar Masson, Head of Corporate Communication in Iceland, mm@glitnir.is
, mobile +354 844 4990



About Glitnir Bank
Glitnir is a Nordic bank, with headquarters in Iceland and operations
in ten countries. Our home markets  are Iceland and Norway, where  we
offer a  broad  range  of  financial  services,  including  corporate
banking, investment banking,  capital markets, investment  management
and retail banking. Outside of our home markets we have operations in
Finland, Sweden, UK,  Luxembourg, US,  Canada, China  and Russia.  We
will furthermore open an office in India in the second half of  2008.
Our international  expansion  is  mainly driven  by  two  specialised
industry sectors - seafood and sustainable energy - in which we  have
developed significant industry expertise  built on our Icelandic  and
Norwegian heritage. Our  shares are  listed on  NasdaqOMX in  Iceland
under the symbol GLB