Fitch puts Kaupthing, Glitnir and Landsbanki on rating watch negative

Fitch Ratings has today placed Kaupthing Bank's, Glitnir Banki's, and
Landsbanki Islands' Long- and Short-term Issuer Default ratings
(IDRs), senior and subordinated debt ratings and Individual ratings
on Rating Watch Negative (RWN). The Support ratings of '2' and
Support Rating Floors of 'BBB' have been affirmed.

While Fitch believes that the three banks' liquidity is currently
sufficient, diminishing confidence in the sector has increased the
risk of unanticipated calls on liquidity while severely restricting
funding options. Moreover, the recent sharp depreciation of the ISK
and the heightened risk of a 'hard landing' for the Icelandic economy
are likely to adversely impact asset quality and performance.

Nevertheless, Fitch notes that the business fundamentals of the three
banks currently remain sound. Liquidity appears comfortable and the
banks are currently able to operate without recourse to the capital
markets for some months to come.

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 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