Kaupthing Bank hf. sells Eik fasteignafélag hf.

| Source: Kaupþing banki hf. Kaupþing banki hf. 

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.