Issuance of stock options

| Source: Kaupþing banki hf. Kaupþing banki hf. 

Kaupthing Bank hf. has, in accordance with the decision of the Annual
General Meeting on 16 March 2007, granted Sigurdur Einarsson,
Executive Chairman and Hreidar Már Sigurdsson, CEO, an option to
purchase a total of 2,436,000 shares in the Bank each, at the price
of 1,007 ISK per share, which is the closing price on the Iceland
Stock Exchange on 16 March 2007. They are authorized to utilize one
third of the option in March each year 2009, 2010 and 2011.

Sigurdur Einarsson owns 7,368,423 shares in the Bank. Sigurdur
Einarsson now has an option to buy 4,060,000 shares in the Bank.
Parties financially related to Sigurdur Einarsson own 14,111 shares
in the Bank.

Hreidar Már Sigurdsson now has an option to buy 4,060,000 shares in
the Bank. Parties financially related to Hreidar Már Sigurdsson own
6,572,039 shares in the Bank. Rights according to a forward contract,
of parties financially related to Hreidar Már Sigurdsson, are 205,078
shares.