GLITNIR ISSUES A CONVERTIBLE BOND Strengthens equity ratio considerably. The board of Glitnir Bank hf. has decided to issue convertible bonds. The bonds will be subordinated and count as Tier 1 in the Company's accounts. The total amount of the issue will be up to ISK 15 bn. The bonds will convert into Glitnir shares in 5 years time at a pre-determined rate in accordance with further terms of the bonds. The bonds provide investors with a fixed inflation linked 5 year coupon as well as upside from positive share price development. The issue counts as Tier 1 capital and will strengthen Glitnir's equity ratio considerably. The bonds will be sold in a closed offering to qualified investors in the period 12-17 March 2008. Following the offering the bonds will be issued before 31 March 2008 and consequently an application will be filed for listing on OMX Nordic Exchange in Iceland. The bond issue and other authorisations related to the issue are dependent on shareholder approval. Such shareholder meeting will be held on 19 March 2008 at 9:00 at Glitnir's headquarters. “The issuance of convertible bonds is a good option for investors in the current market conditions. The bonds have a downside protection, carry a 5 year fixed indexed coupon and convert into Glitnir's shares at maturity. Investors therefore benefit from positive share price development. The issue will strengthen Glitnir's equity ratio considerably and is one of the bank's ongoing funding initiatives.” says Alexander K. Guðmundsson, CFO and EVP of Finance and risk management of Glitnir. Glitnir recently reported profits of ISK 33.9 bn. (EUR 387m) before taxes and a return on equity 19.3% for 2007. The Bank is in a comfortable liquidity position with EUR 7 billion immediate available funds with maturing long term debts of EUR 2.5 billion for the group due for the remainder of the 2008. The Bank has a robust capital ratio of 11.2% at end of 2007. For further information: Már Másson, Executive Director of Corporate Communications, Tel. +354 8444990, e-mail: mar.masson@glitnir.is Vala Pálsdóttir, Head of Investor Relations, Tel. +354 8444989, e-mail: vala.palsdottir@glitnir.is