Kaupthing Bank Acquires NIBC

This announcement and the information contained herein or in any
document attached hereto or referred to herein is not for
publication, distribution or release, in whole or in part, in, or
into, directly or indirectly, the United States, Australia, Canada or
Japan or any other jurisdiction where such publication, distribution
or release would be unlawful.

This announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States.
The shares in Kaupthing Bank hf. ("Kaupthing") may not be offered or
sold in the United States absent registration or an exemption from
the registration requirements of the Securities Act of 1933, as
amended (the "Securities Act"). Kaupthing's shares have not been, nor
will be, registered under the Securities Act and Kaupthing does not
intend to offer publicly any securities in the United States.

Kaupthing Bank Acquires NIBC
Kaupthing Bank hf. ("Kaupthing") today announces that it intends to
purchase the entire share capital of NIBC Holding NV ("NIBC") for EUR
2.985 million. NIBC represents an excellent strategic fit for
Kaupthing in terms of geographic diversification, products and
business culture.

NIBC is a Dutch merchant bank focused on the mid-cap segment in
western Europe with a global distribution network. The Bank has 718
full-time employees and offices in The Hague, London, Brussels,
Frankfurt, New York and Singapore. NIBC, which was founded in 1945,
offers innovative corporate finance, banking and investment
management solutions to corporate clients, financial institutions,
institutional investors and family offices. NIBC is presently owned
by a consortium of shareholders led by J.C. Flowers & Co. LLC ("JCF &
Co." or the "Sellers").

The expected acquisition will allow Kaupthing to further diversify
and strengthen its existing operations. It will also make it one of
the leading corporate and investments banks focusing on financial
services to small and medium sized enterprises in Europe. The
combined group will benefit from Kaupthing and NIBC's complementary
product offerings and compatible business culture.

Transaction Terms and Financing
The purchase price of EUR 2.985 million represents 12.7x NIBC's last
twelve months ("LTM") net income and 1.5x NIBC's shareholders' equity
as at 30 June 2007.

The purchase consideration will be structured as follows:

- 110 million of newly issued Kaupthing shares at SEK 115.375  per
share for an aggregate value of EUR 1.360 million will be issued to
the Sellers in relation to completion. The Sellers will become the
second largest shareholder in Kaupthing. These shares will be subject
to a customary lock-up arrangement whereby all will be restricted for
12 months from closing, tapering to approximately 48 million for 24
months.

- Cash consideration of EUR 1,625 million financed from existing cash
resources, an issue of Tier 1 hybrid instruments and proceeds from an
issuance of 40 million new shares (via a pre-emptive rights issue).
The rights issue is expected to take place early next year.

Press conference and an analyst conference call
Kaupthing and NIBC will hold a conference call for analysts and
investors at 11.00 am (CET) today and a press conference at 14:00
(CET) today in Amsterdam. More information about Kaupthing's
acquisition of NIBC is available at www.kaupthing.com.

For analyst and investor conference call please dial +31 (0) 20 531
58 46.

The press conference will be held at Hilton Amsterdam Schiphol
Airport Hotel at Schipholboulevard 701, 1118 BN Schiphol Airport.
Room: Cairo & Melbourne.
For further information, please contact:

Kaupthing Bank
Hreidar Már Sigurdsson
Chief Executive Officer
Tel: +354 444 6105

Jónas Sigurgeirsson
Chief Communications Officer
Tel: +354 444 6112

PR advisers to Kaupthing:
Anita Scott/ Tom Williams, Brunswick Group LLP
+44 207 404 5959

NIBC
Peter Bodes
Director Investor Relations & Corporate Communications NIBC
Tel: +31 70 342 56 25

About NIBC
NIBC's predecessor De Nationale Investeringsbank was established in
1945 by the Dutch government to help finance the reconstruction of
the Nether¬lands. From the beginning, the bank provided long term
financing to the Benelux area through both lending and private equity
investment. Until 1999, the Bank was majority owned by the Dutch
government and other Dutch institutions. In 1999 the Bank was sold to
ABP and PGGM, which marked the start of the evolution from a long
term lending bank into a Merchant Bank focused on North West Europe.
On Decem¬ber 14, 2005, NIB Capital N.V. was sold to a con¬sor¬tium of
international investors, organized by J.C. Flowers & Co. LLC. In
February 2006 the brand name was changed to NIBC.

Today NIBC is a merchant bank focused on the mid-cap segment in
western Europe with a global distribution network. NIBC offers
innovative corporate finance, risk management and investment
management solutions to corporate clients, financial institutions,
financial sponsors, institutional investors and family offices. NIBC
has offices in The Hague, London, Brussels, Frankfurt, New York and
Singapore.

NIBC's strategy is based on its intermediary role in asset
origination and distribution. The strategy is executed through the
integrated business model, which embodies the way in which NIBC
operates, bringing specialised expertise and knowledge to targeted
clients and segments.

For more information, please contact Investor Relations & Corporate
Communications.
Phone:  +31 (0)70 342 56 25
Web : www.nibc.com
About J.C. Flowers & Co LLC
J.C. Flowers & Co. LLC, based in New York, is a private equity firm
focused solely on the financial service sector. Its latest fund has
over USD 7 billion in commitments from investors.
About Kaupthing Bank
Kaupthing Bank ("Kaupthing") is a European bank offering integrated
financial services to companies, institutional investors and high net
worth individuals. These services include corporate banking,
investment banking, capital markets services, treasury services and
asset management and comprehensive wealth management for private
banking clients.

The bank operates in ten countries, including all the Nordic
countries, Luxembourg, Switzerland, the UK and the US. In addition,
the bank operates a retail franchise in Iceland, where it is
headquartered.

Based on Kaupthing's market capitalisation of EUR 9.2 billion as of
14 August 2007, the bank is currently the seven largest bank in the
Nordic region. Through strong organic growth and strategic
acquisitions, such as the acquisition in Denmark of FIH Erhvervsbank
in 2004 and the acquisition of the UK-based bank Singer & Friedlander
in 2005, Kaupthing has successfully increased both the product and
geographic diversification of its operations. As of 30 June 2007 the
bank has 2,970 employees and total assets of EUR 54.3 billion.

Kaupthing's shares are listed on the OMX Nordic Exchange in Iceland
and Stockholm.

For further information about Kaupthing, go to www.kaupthing.com