Fitch Downgrades Landsbanki to BBB / F3 / C

Fitch Ratings today downgraded Landsbanki's long-term Issuer Default
Ratings (IDR) to 'BBB' from 'A', short-term IDR to 'F3' from 'F1',
and individual rating at 'C' from 'B/C'. All credit ratings have been
placed on rating watch negative.

The long-term IDR for the bank's UK subsidiary, Landsbanki Heritable
Bank was also downgraded to 'BBB' from 'A', short-term IDR to 'F3'
from 'F1', and individual rating affirmed at 'C'. All credit ratings
have been placed on rating watch negative.

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.
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269
7204 / mob: +44 7711 264 157.