Glitnir Banki hf. Company Announcement Covered Bond Programme

GLITNIR BANKI HF.
Kirkjusandur 2
IS-144 Reykjavík
Iceland
(the "Issuer")

ISK 100,000,000,000 Covered Bond Programme (the "Programme")

Series 1 ISK 45,100,000,000 Inflation Linked Covered Bonds due 2051
Series 2 ISK 20,100,000,000 Inflation Linked Equal Payment Covered
Bonds due 2050
(together, the "Covered Bonds")

The Covered Bonds are admitted to trading on the regulated market of
the OMX Nordic Exchange Iceland hf.

The Issuer wishes to announce the following:

1. That the following requirement of the Eligibility Criteria set out
on page 103 of the Prospectus dated 16 February 2008 in respect of
the Programme has been deleted in its entirety:"(c)      no Loan that is proposed to be sold to the Fund on the
relevant Assignment Date has a loan-to-value ratio of more than 90
per cent.;"

2. That the maximum Asset Percentage in respect of each Pool has been
reduced to 71,5 per cent.

Reykjavik, July 17th 2008,
Glitnir banki hf.