Fitch downgrades Landsbanki's credit rating to B / B / F

Fitch Ratings today downgraded Landsbanki's long-term Issuer Default
Ratings (IDR) to 'B' from 'BBB', short-term IDR to 'B' from 'F3', and
individual rating at 'F' from 'C'. All credit ratings are on 'Rating
Watch Evolving'.

The long-term IDR for the bank's UK subsidiary, Landsbanki Heritable
Bank was also downgraded to 'BB' from 'BBB', short-term IDR to 'B'
from 'F3', and individual rating downgraded to 'D' from 'C'. All
credit ratings are on 'Rating Watch Evolving'.

For further information on the rating action, please refer to the
attached press release from Fitch.

For further information please contact:
Brynjólfur Helgason, Alternate CEO and MD International Banking.
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269
7204 / mob: +44 7711 264 157.