Fitch affirms Landsbanki's credit rating at A / F1 / B/C

Fitch Ratings has today completed their review of Landsbanki's
ratings, affirming the long-term Issuer Default Ratings (IDR) at 'A',
short-term IDR at 'F1', and individual rating at B/C. A negative
outlook was assigned to long-term IDR.
 
The long-term IDR for the bank's UK subsidiary, Landsbanki Heritable
Bank was also affirmed at 'A' with assigned negative outlook,
short-term IDR at 'F1', and individual rating at 'C'. A negative
outlook was assigned to long-term IDR.
 
For further information on the rating action, please refer to the
attached press release from Fitch.
 
For further information please contact:
Landsbanki's CEOs Sigurjón Th. Árnason, tel. +354 410-4009 / +354 898
0177 and Halldór J. Kristjánsson, tel. +354 410 4015 / +354 820 6399
or Brynjólfur Helgason, Alternate CEO and MD International Banking.
 
About Landsbanki
Landsbanki is a growing European bank with total assets of ISK 3,836
billion (EUR 32.1 bn) at 31 March 2008 and a market capitalisation of
ISK 304 billion (EUR 2.48 bn) as of 9 May 2008. Through its extensive
distribution network of 2,640employees 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 100 analysts covering close
to 950 European stocks.

The market leader in the Icelandic financial service sector,
Landsbanki's growth in recent years has been primarily organic, based
upon smaller, 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 ticker LAIS. Landsbanki
is rated by Moody's (A2 / P-1 / C- / Stable) and Fitch (A / F1 / B/C
/ Negative).