Straumur-Burdaras Investment Bank results for the first nine months of 2008 and October 2008

Due to developments in global and Icelandic financial markets since
the start of October 2008, Straumur-Burdaras Investment Bank
("Straumur" or the "Bank") is additionally reporting its results for
October 2008 and its financial position as of 31 October 2008 as part
of its Q3 2008 result announcement. This is consistent with
Straumur's policy to be as transparent as possible by disclosing any
relevant information to its shareholders and creditors.

Key results for the first nine months of 2008
* Loss after tax was € 124.7m for the first nine months of 2008. Loss
  before tax amounted to € 164.6m.
* Operating income totalled € 50.4m.
* Client-driven income, comprising net interest and net fee and
  commissions, was up 3.4% from same period in 2007, at € 145.1m.
* There was a loss of € 98.8m from trading and investment activities
  as markets continued to fall.
* Operating expenses totalled € 92.7m.
* Total assets amounted to € 5.2bn at 30 September 2008, decreasing
  by 26.5% from the beginning of the year.
* Impairments totalled € 122.3m.
* Assets under management totalled € 1.2bn at the end of the period.
* Strong CAD ratio of 22.5% at 30 September 2008. The Tier 1 capital
  ratio was 20.3%.

  Key results for the third quarter of 2008
* Loss after tax was € 145.6m in the third quarter. The loss before
  tax was € 168.9m.
* Operating loss for Q3 2008 was €31.1m.
* Client-driven income totalled € 41.3m.
* Net losses from trading and investment activities amounted to €
  73.6m.
* Operating expenses were € 30.7m.
* Impairments totalled € 106.8m.

  Key results for October 2008
* Loss after tax was € 150.6m in October 2008. The loss before tax
  was € 175.1m.
* Operating income was €78.5m.
* Client-driven income totalled € 11.4m.
* Net gains from trading and investment activities amounted to €
  66.3m.
* Total assets were € 4.4bn at 31 October 2008, decreasing by € 0.8bn
  or 15.7% from 30 September 2008.
* Impairments totalled € 244.6m, driven by extraordinary events in
  the global and Icelandic markets.
* The CAD ratio was 17.6% at 31 October 2008. The Bank had more than
  twice the minimum regulatory requirement for capital. The Tier 1
  capital ratio was 15.6%.
* The liquidity position is acceptable given the tough market
  conditions. The Bank is actively working on securing its medium
  term liquidity position.

  William Fall, CEO of Straumur"The global financial markets have been characterised by a
  progressively more difficult market environment since June 2007.
  The financial crisis deepened in the third quarter of 2008 and at
  the start of the fourth quarter we witnessed unprecedented failure,
  especially in Iceland. At the end of September and start of
  October, the Icelandic Financial Supervisory Authority (FME)
  assumed control of the three largest Icelandic commercial banks. As
  a result of this, the foreign exchange market in Iceland virtually
  closed. As a consequence of these events, the international
  community lost confidence in the Icelandic financial system. These
  developments have adversely impacted most financial institutions,
  including Straumur. However, the Bank is weathering the storm and
  we are now in a position to look forward.

  Our focus in the third quarter, and especially since the beginning
  of October 2008, has been on reducing our balance sheet and risk
  profile, protecting our capital, improving our liquidity position
  and proactively managing our relationships with our counterparties.
  The Bank has also taken opportunities to develop further the
  revenue generating capability of the organisation by recruiting a
  number of the former Teather's staff in London in order to enhance
  its Corporate Finance and Securities platform in the UK. Our
  capital position remains strong, with a capital ratio 22.5%. The
  Bank has a syndication maturing in December and refinancing is
  close to being finalised.

  Despite difficult conditions I am confident that the repositioning
  of Straumur's business model over the past months and its strong
  capital position will enable the Bank to develop its business in
  line with its declared strategy - focusing on client-driven
  revenues, diversifying its sources of income and de-risking its
  balance sheet."

  Key numbers
  € m 10m 2008 9m 2008 9m 2007 Oct. 2008 Q3 2008 Q2 2008 Q1 2008
  Client-driven income* 156.5 145.1 140.3 11.4 41.3 49.8 53.9
  Operating income 128.8 50.4 273.5 78.5 (31.1) 15.3 66.2
  Operating expenses (101.8) (92.7) (72.2) (9.0) (30.7) (26.9) (35.1)
  Impairments (366.8) (122.3) (11.6) (244.6) (106.8) (8.0) (7.4)
  Profit (loss) before tax 339.8 (164.6) 189.6 (175.1) (168.9) (20.2)
  24.4
  Profit (loss) for the period 275.3 (124.7) 163.5 (150.6) (145.6)
  (1.4) 22.3

  CAD ratio % 17.6 22.5 28.7
  Tier 1 ratio 15.6 20.3 26.3
  *Client-driven income is the sum of net interest, net fee and net
  commission income.

  Further information can be obtained from:
  Stephen Jack
  CFO
  stephen.jack@straumur.com
  +44 7885 997570

  Georg Andersen
  Head of Corporate Communications
  georg.andersen@straumur.com
  +354 858 6707