Kaupthing announces the final phase of the restructuring of its UK business

As the final step in the restructuring of the UK business following
Kaupthing's acquisition of Singer & Friedlander in 2005, Kaupthing
Singer & Friedlander announces that it will be exiting its Asset
Finance and Commodity Trade Finance businesses and that it has made
structural changes within its Banking Division.

Following the restructuring Kaupthing Singer & Friedlander will be
purely focused on providing integrated financial services to small
and medium sized businesses and high net worth individuals through
its five core business segments; Banking, Investment Banking
Treasury, Capital Markets and Asset Management & Private Banking.

Asset Finance (Corporate Asset Finance, Healthcare Asset Finance and
Insurance Premium Finance) and Commodity Trade Finance are non-core
to Kaupthing Singer & Friedlander and have been operating largely on
a standalone basis. Exiting these businesses will have a positive
impact on the cost base and will free up liquidity in excess of GBP 1
billion (EUR 1,3 billion) in 2008. The capital released will be
reinvested to further grow the core UK business. After the divestment
there is no longer any significant asset finance business within the
Kaupthing group.

In addition Kaupthing Singer & Friedlander has transferred the
Structured Finance division from Banking into the Acquisition and
Leveraged Finance division within Investment Banking. Kaupthing
Singer & Friedlander will also close its Property and Corporate
Banking activities in Leeds and Manchester and move them to
Birmingham and London.

Ármann Thorvaldsson, CEO of Kaupthing Singer & Friedlander"These changes are the final steps in the restructuring process
following our acquisition of Singer and Friedlander. We are now
focusing our resources and capital on the core businesses in the UK.
I would like to thank the management and staff of the businesses we
are exiting for their contribution to the success we have experienced
in our operation here in the UK."

For further information please contact:
Jónas Sigurgeirsson, Chief Communications Officer, Kaupthing Bank -
tel: + 354 444 6112
Anita Scott / Nigel Prideaux, Brunswick Group LLP - tel: +44 20 7404
5959


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 thirteen 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 in Finland, Norvestia Oyj in Finland, Kaupthing New York,
Kaupthing Switzerland, Kaupthing Bank Belgium and Kaupthing Bank
Norge in Norway. The Bank also has activities in Isle of Man, the
Dubai International Financial Centre (DIFC) and the Qatar Financial
Centre (QFC). As of 31 December 2007 the number of full-time
equivalent positions was 3,334 at Kaupthing Bank and its
subsidiaries. www.kaupthing.com