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