Kaupthing Bank raises equivalent of EUR 1.3 billion in long-term funding

Kaupthing Bank has concluded a series of bond private placements
totalling USD 1,675 million (EUR 1.1 billion) to investors in the US
and Europe. Kaupthing has also finalised a bilateral loan of EUR 195
million with a European bank. In comparison the Parent Company has
only about EUR 1.1 billion of long-term redemptions for the remainder
of the year and FIH has EUR 1.8 billion. The terms of the
aforementioned funding are considerably below the Bank's current CDS
levels in the market and have a maturity ranging from 1 to 7.5 years.

This new funding of EUR 1.3 billion adds to the strong liquidity
position, which is further supported by the fact that Kaupthing
Singer & Friedlander will be exiting its Asset Finance and Commodity
Trade Finance businesses in the UK (announced on 25 February), which
is expected to free up liquidity in excess of GBP 1 billion (EUR 1.3
billion) in 2008. Further funding this year will be aimed at
financing the modest growth of the Bank and pre-funding the year
2009.


Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 or 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 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