Kaupthing permitted to apply for judicial review

The High Court of England  has consented to Kaupthing Bank's  request
for permission to apply for judicial review of the legitimacy of  the
decision taken by the  UK authorities to transfer  to a third  party,
without compensation, deposits  from Kaupthing Edge  accounts at  the
bank's UK subsidiary,  Kaupthing Singer &  Friedlander, on 8  October
2008. This  decision  was a  precursor  to  the decision  by  the  UK
authorities  to   place   Kaupthing   Singer   &   Friedlander   into
administration, which led the bank's creditors to call in the  bank's
loans and  resulted  in  the Financial  Services  Authority's  taking
control of the bank.

The court will  now fix  a hearing  at which  evidence and  arguments
concerning the UK  authorities' intervention into  the operations  of
Kaupthing Singer  & Friedlander  will be  considered. Kaupthing  Bank
contends that  the actions  of  the UK  authorities were  unjust  and
illegal.

Kaupthing Bank's resolution committee  welcomes the court's  decision
and hopes that  promised financial support  will be forthcoming  from
the Icelandic  Government to  ensure that  legal proceedings  can  be
continued. Kaupthing  Bank's  resolution  committee  also  wishes  to
underline that  the court's  decision in  no way  indicates what  the
final outcome of this case will be.

For further  information please  contact Johannes  Runar  Johannsson,
Advocate  to   the   Supreme  Court   on   +354  693   6969   or   at
johannes.johannsson@kaupthing.com.
Kaupthing Bank hf. - Resolution Committee