- FME agrees to Byr's conversion to limited company


The Financial Supervisory Authority (FME) has agreed to Byr's application to
change from savings bank to limited company. 

The Byr guarantee share capital holders discussed at a well-attended meeting on
29 August 2008, the board's proposal to change the form of the savings bank to
that of a limited company. The proposal was agreed by an overwhelming m	ajority
of votes where only 3 votes were recorded against the motion. Following this
the agreement of the FME was sought, and the FME announced its decision on
Friday (19 September 2008) on the basis of article 73 of laws no.161/2002 on
financial institutions. The Bank is now waiting for the agreement of it's
creditors. 

For further information please contact Mr Ragnar Z. Gudjonsson, tel. +354 575
4000.