District Court of Reykjavik grants a Moratorium order on Old Glitnir

On 24 November 2008 the District Court of Reykjavik granted a
Moratorium order on Old Glitnir.  The Moratorium is not a bankruptcy
proceeding and does not affect Old Glitnir's banking licences or its
ability to operate as a bank in those jurisdictions where that is
appropriate.  Rather it is a specialised proceeding under Icelandic
law designed to provide Old Glitnir with appropriate global
protection from legal action taken, or anticipated to be taken, by
its creditors.
The Moratorium order will ensure that all creditors of Old Glitnir
are treated fairly and appropriately under Icelandic law and EEA
directives. It will also give Old Glitnir time to consider all
strategic alternatives including an arrangement with its creditors
that will permit Old Glitnir to emerge from the Moratorium as a going
concern. In order to allow for due consideration of those
alternatives, the Resolution Committee has no intention of selling
significant assets other than in exceptional circumstances. The
Resolution Committee believes that retaining and managing the assets
of Old Glitnir will maximise the value of those assets, and will
support a restructuring of Old Glitnir and its emergence from the
Moratorium procedure.
Steinunn Gudbjartsdottir, supreme court attorney, a former member of
the Glitnir Resolution Committee, has been appointed Moratorium
Administrator, reporting to the District Court of Reykjavik, and will
supervise the actions taken by the Resolution Committee.
Old Glitnir's Resolution Committee has begun meeting with
representatives of its creditors to solicit their input on strategic
alternatives and Steinunn has indicated her desire to have those
discussions continue.  Many of Old Glitnir's creditors have expressed
support for this process and the Resolution Committee expects it to
continue during the Moratorium period.  The Resolution Committee's
goal is to work with representatives of its creditors towards a
negotiated framework for maximising Old Glitnir's ability to repay
its creditors over time.
For the avoidance of doubt, New Glitnir banki hf, which assumed the
domestic Icelandic operations of Old Glitnir on 14 October 2008, is
completely unaffected by the Moratorium and will continue to provide
a full service to its clients in Iceland.

Further information:
Pall Eiriksson, general counsel of the Resolution Committee of
Glitnir banki hf., email pall.eiriksson@glitnirbank.com , phone +354
440 2710