Kaupthing Bank inaugural Mexican bond issue

Kaupthing Bank hf. launched a 2.3 billion Mexican peso (USD 200
million equivalent) bond transaction yesterday. This is Kaupthing's
first bond issue in Latin America and first ever public issue by a
Nordic bank in Mexico.
The bond has a maturity of five years and pays a coupon of TIIE
+25bps or equivalent to three month USD LIBOR + 72bps. The issue
followed a recent successful road show to Mexico city and Monterrey.
Joint lead managers in this transaction were BBVA Bancomer and Lehman
Brothers.

Gudni Adalsteinsson Chief Treasurer"This bond issue into the Mexican market is a part of our stated
strategy of diversifying our funding sources. We are happy with the
market acceptance and comfortable with the price."

Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126
Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112


About Kaupthing Bank
Kaupthing Bank is a Northern 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 twelve countries, including all the Nordic
countries (Denmark, Faroe Islands, Finland, Iceland, Norway and
Sweden), Luxembourg, Switzerland, the UK, the US, Dubai and Qatar.

Based on Kaupthing's market capitalisation of EUR 9.9 billion as of
31 August 2007, the bank is currently the seventh 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.
www.kaupthing.com