- Kaupthing and SPRON to initiate merger discussions

Kaupthing Bank hf. ("Kaupthing") and Sparisjódur Reykjavíkur og
nágrennis hf. ("SPRON") have decided to enter negotiations on a
possible merger between the companies. Negotiations are expected to
be completed in approximately four weeks.
 
Any merger of the companies is subject to the approval of a SPRON
shareholders' meeting, the Board of Directors of Kaupthing, the
Icelandic Financial Supervisory Authority, the Icelandic Competition
Authority and the companies' creditors.
 
For further information please contact Ingólfur Helgason, CEO of
Kaupthing Bank in Iceland, tel: +354 444 6121.