- Kaupthing Bank hf. granted a moratorium

On 24 November 2008 the District Court of Reykjavik granted Kaupthing
Bank hf. ("Kaupthing") a moratorium on payments to creditors. In the
opinion of the Resolution Committee, applying for the moratorium was
a neccessary step in order to ensure that all creditors of Kaupthing
are treated fairly and appropriately, in accordance with Icelandic
law and EU directives. It will provide Kaupthing with appropriate
protection from legal action, while retaining a banking licence
sufficient to support its assets.

The moratorium will also give Kaupthing the opportunity to continue
discussions with the bank's creditors with the aim of maximizing
recovery for all stakeholders. As has been announced previously, an
Informal Creditors' Committee (ICC) has been formed. The moratorium
will assist in making Kaupthing's ongoing co-operation with the ICC
more effective.  It is intended that a second meeting with the ICC
will be held in December.

Mr. Ólafur Gardarsson, Advocate to the Supreme Court of Iceland, has
been hired as Moratorium Supervisor. He will work with the Resolution
Committee, which will continue to wield the powers of the Board of
Directors of Kaupthing in accordance with Icelandic law. His aims are
consistent with those of the Resolution Committee, namely, to
preserve assets and to optimise recovery for the creditor body.

The moratorium has been granted until Friday 13 February 2009, at 2
pm Icelandic time. The Moratorium Supervisor is obliged to summon
Kaupthing's creditors to a meeting to be held not later than three
days prior to that date. The moratorium process can, at a maximum,
last for 24 months.

Nýi Kaupþing banki hf. (New Kaupthing Bank), which assumed the
Icelandic operations of Kaupthing on 21st October 2008, is not
affected by the moratorium.