Moody's Upgrades Kaupthing Bank's Credit Rating to Aaa

Moody's Investors Service has announced an upgrade of Kaupthing
Bank's credit rating. The Bank's long-term deposits and senior debt
ratings in local and foreign currencies have been upgraded from A1 to
Aaa, the highest possible rating assigned by Moody's.

The Bank's ratings for short-term obligations in local and foreign
currencies, P-1, which is the highest rating given by Moody's,
remains unchanged. The Bank's rating for financial strength, C, also
remains unchanged.

Moody's upgrade results from the implementation of joint default
analysis (JDA) methodology, which takes into account potential
sources of external support for banks, and its updated bank financial
strength rating (BFSR) methodology.

Moody's announcements are attached.

For further information please contact:
Gudni Adalsteinsson, Chief Treasurer, tel: +354-444-6126
Jónas Sigurgeirsson, Chief Communications Officer, tel: +354-444-6112

About Kaupthing Bank
Kaupthing Bank offers comprehensive commercial and investment banking
services to individuals, companies and institutional investors. The
Bank is a leading player in all the main areas of the Icelandic
financial market, and in addition to Iceland, the Bank's key markets
are Denmark and the United Kingdom. The Bank focuses on the growth
and development of its international activities and aims to be one of
the leading investment banks in northern Europe.

Kaupthing Bank operates in ten countries with its headquarters
located in Reykjavík. The Bank's main subsidiaries are FIH
Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United
Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing
Bank Oyj in Finland, Norvestia in Finland, Kaupthing Føroyar,
Kaupthing New York, Kaupthing Asset Management in Switzerland,
Kaupthing Norge in Norway, Arion and Kaupthing Líftryggingar hf. in
Iceland. As of 31 December 2006 the number of full-time equivalent
positions was 2,719 at Kaupthing Bank and its subsidiaries.

Information on Kaupthing Bank is also available on the Bank's website
www.kaupthing.com