Kaupthing Bank hf. has reached an agreement with Eikarhald ehf. on the sale of all the share capital of Eik fasteignafélag hf. The transaction will be completed on 4 April 2007 when the payment and delivery of the shares to the new owners is executed. The purchase price will be paid in cash. Eikarhald ehf. is owned by Baugur Group hf. (22.7%), FL Group hf. (49%), Fjárfestingafélagid Primus ehf. (10.15%) and Saxbygg ehf. (18.15%). Kaupthing Bank will generate a profit of approximately ISK 4 billion on this transaction, which will be booked in the second quarter of 2007. In 2006 Eik fasteignafélag hf. had a turnover of ISK 1,181 million and reported a pre-tax profit of ISK 582 million. Total assets as of 31 December 2006 amounted to ISK 14,600 million and total liabilities as of 31 December 2006 amounted to ISK 12,475 million. The company employs eight people. The Investment Banking division of Kaupthing Bank was the advisor on the sale. For further information please contact: Jónas Sigurgeirsson, Chief Communications Officer at Kaupthing Bank on +354 444 6112, and Jóhann Pétur Reyndal, Managing Director of Kaupthing Bank - Investment Banking on +354 444 6815.