Kaupthing Bank hf. (Kaupthing) signs market making agreement with Landsbanki Islands hf. (Landsbanki)


Kaupthing today announces that it has signed a market-making agreement with
Landsbanki, where Landsbanki will act as market maker for shares issued by
Kaupthing. This means that Landsbanki will submit daily bid/ask offers for
shares in Kaupthing through OMX Nordic Exchange Iceland before the market opens
each day on offers that will only be valid within that day. The purpose of the
agreement is to facilitate trading and improve liquidity in Kaupthing's shares
on the OMX Nordic Exchange Iceland and to promote efficient and transparent
price formation. 

The terms of the market making agreement are as follows: 
Landsbanki will submit daily bid and offer quotes for shares in Kaupthing for a
minimum of 40.000 shares (each share being ISK 10,0 at nominal value ) at a
price determined by Landsbanki. 

Maximum bid/ask spread shall not exceed 1.0% and the deviation from the last
transaction price shall not exceed 3.0% 

The maximum obligated total trades per day is ISK 400,000,000 market value 

The agreement is effective as of 21 January 2008.

For further information:
Landsbanki - Tinna Molphy, Head of Investor Relations, ir@landsbanki.is and
tel: +354 410 7200 / mob: +354 861 1440. 
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 /
mob: +44 7711 264 157. 

About Landsbanki
Landsbanki is a growing European bank with total assets of ISK 2,847 billion
(EUR 32.4 bn) at 30 September 2007 and a market capitalisation of ISK 354
billion (EUR 3.7 bn) at 18 January 2008. Through its extensive distribution
network of 2,499 employees in 17 countries, Landsbanki is set to deliver
targeted financial services based on local expertise for mid-cap corporates in
Europe. Landsbanki provides retail and corporate banking, investment banking,
capital markets services, asset management and wealth management for private 
banking clients. Landsbanki's unique product line includes access to both debt
and equity markets and its research department is among the most comprehensive
in Europe, including some 90 analysts covering close to 900 European stocks. 
 
The market leader of the Icelandic financial service sector, Landsbanki's
growth in recent years has been primarily organic, based upon small
strategically acquired platforms in the UK, Ireland and Continental Europe.
Most recently, the bank acquired the securities broker and investment bank
Bridgewell in the UK. 
 
Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the
OMX Nordic Exchange Iceland under the symbol <LAIS IR>. Landsbanki is rated by
Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).