- Kaupthing sells its Insurance Premium Finance business in the UK

Kaupthing Bank's subsidiary, Kaupthing Singer & Friedlander ("KSF")
has sold its Insurance Premium Finance business to Close Brothers at
a small premium to net asset value. The sale will free up more than
GBP 100 million in liquidity for KSF. The Commodity Trade Finance has
also effectively been closed and 97% of the initial portfolio, which
was approximately GBP 350 million, has been run-off.

KSF announced in February 2008 the final step of its UK restructuring
following Kaupthing's acquisition of Singer & Friedlander in 2005.
KSF announced that it would be exiting its Asset Finance and
Commodity Trade Finance businesses and that it had made structural
changes within its Banking Division.

The exit from the Asset Finance businesses has been ongoing since the
announcement with interest expressed for the whole operation and
parts of the operation from a number of potential acquirers. The
disposal process of the Corporate Asset Finance division and
Healthcare Finance division is ongoing and Kaupthing expects to give
a further update on progress in the coming months.

Ármann Thorvaldsson, CEO of Kaupthing Singer & Friedlander"Our exit from the Commodity Trade Finance and Insurance Premium
Finance businesses, in addition to the very successful roll-out of
our internet deposit gathering platform Kaupthing Edge, has further
strengthened our liquidity position. We therefore remain optimistic
on the general outlook for the business in the UK."

For further information please contact:
Jónas Sigurgeirsson, Chief Communications Officer, Kaupthing Bank,
tel: +354 444 6112
Ármann Thorvaldsson, Chief Executive Officer, KSF, tel: +44 203 205
5000
Anita Scott / Tom Williams, Brunswick Group LLP, tel: +44 20 7404
5959