Fitch affirms Kaupthing's ratings - Outlook changed to negative

Fitch Ratings today announced that Kaupthing Bank's ratings were
affirmed at Long-term IDR 'A', Short-term IDR 'F1', Individual 'B/C',
Support '2' and Support Rating Floor 'BBB'. Fitch has changed the
Outlook for Kaupthing's Long-term IDR to Negative from Stable.

Fitch stated: "The change of the Outlook from Kaupthing's Long-term
IDR follows the downgrade of NIBC's Long-term IDR and Fitch's view
that the potential volatility of NIBC's business model has become
more challenging. NIBC will become a large part of the Kaupthing
group, adding potentially volatile revenues and again increasing the
group's reliance on wholesale funding, although initiatives to raise
customer deposits could mitigate this risk."

Fitch also stated: "Nevertheless, the ratings of Kaupthing are
supported by the good strategic fit of the acquisition, the improved
diversification of its profits and assets, good performance and asset
quality indicators and satisfactory capitalisation, despite the
significant goodwill to be generated from the acquisition."

See Fitch announcement:
http://www.kaupthing.com/Investors/Ratings/Fitch

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


About Kaupthing Bank
Kaupthing Bank offers comprehensive commercial and investment banking
services to individuals, companies and institutional investors. The
Bank is a leading player in all the main areas of the Icelandic
financial market, and in addition to Iceland, the Bank's key markets
are Denmark and the United Kingdom. The Bank focuses on the growth
and development of its international activities and aims to be one of
the leading investment banks in northern Europe.

Kaupthing Bank operates in twelve countries with its headquarters
located in Reykjavík. The Bank's main subsidiaries are FIH
Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United
Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing
Bank Oyj in Finland, Norvestia Oyj in Finland, Kaupthing New York,
Kaupthing Asset Management in Switzerland and Kaupthing Norge in
Norway. The Bank also has activities in the United Arab Emirates
(Dubai) and Qatar and operates a branch in the Faroe Islands. As of
30 September 2007 the number of full-time equivalent positions was
3,190 at Kaupthing Bank and its subsidiaries. www.kaupthing.com