- acquires the majority in the finnish bank eQ and makes a mandatory tender offer

Straumur-Burdaras Investment Bank hf has acquired the majority in eQ
Corporation, a finnish bank specialising in brokerage, asset management, and
corporate finance.  A mandatory tender offer will be launched for all of the
shares and option rights in eQ. The offer price will be EUR 7.60 for each share
and EUR 5.40 for each option right in eQ. The acquisition value on a fully
diluted basis is EUR 260 million. eQ's Board of Directors recommends the
shareholders and holders of option rights to accept the mandatory tender offer. 

Straumur-Burdaras has acquired 62 per cent of all shares in eQ Corporation
(„eQ“) for a purchase price of EUR 7.60 per share payable in cash.
Straumur-Burdaras will also make a mandatory tender offer for all of the
remaining shares and option rights in eQ. The offer price payable under the
mandatory tender offer will be EUR 7.60 per share and EUR 5.40 per option right
payable in cash. The acquisition value on a fully diluted basis is EUR 260
million. Straumur-Burdaras has received regulatory approval from the Icelandic
Financial Supervision Authority  and the completion of the acquisition and the
mandatory tender offer will not be subject to any conditions. The tender offer
will be launched in early June with an acceptance period of three weeks. 

eQ specialises -e.g. in brokerage, asset management, and corporate finance and
the Bank has grown rapidly and successfully within Finland in the past years.
The support of Straumur-Burdaras' strong balance sheet will enable eQ to grow
even faster locally in addition to expanding its service offering into new
geographical areas. 

Straumur-Burdaras' strategy is to become a leading Nordic investment bank.
Straumur-Burdaras intends to achieve this aim by expanding its operations, with
a particular focus on the Nordic countries and the UK, while simultaneously
diversifying the bank's income sources. The acquisition of eQ is an essential
step in fulfilling this strategy, e.g. by adding asset management services to
Straumur-Burdaras' product range, adding the fifth country to the bank's
operations, increasing the customer base by approximately 48 thousand, growing
the balance sheet to EUR 6.2 billion, and increasing fee and net interest
income from 43% to 50% of net revenues. 

Björgólfur Thor Björgólfsson, Chairman of the Board of Straumur-Burdaras:
“Straumur-Burdaras Investment Bank is an international investment bank with the
objective of becoming one of the leading investment banks in Scandinavia. The
acquisition of eQ is a significant milestone in building up the company's
presence in Scandinavia as it creates a platform for our services in Finland.
It is my belief that there are opportunities for a progressive and competitive
investment bank in the Finnish financial market and I am convinced that the
joint forces of eQ and Straumur-Burdaras will do well in exploring them.” 

“The acquisition of eQ is a significant step in our strategy implementation”
says Mr Fridrik Johannsson, CEO of Straumur-Burdaras. “eQ is a perfect fit for
further geographical and operational diversification of Straumur-Burdaras,
enabling us to expand into a key market that offers simultaneously a fast
growing economy and a stable environment. We are impressed by the exceptional
team of professionals that will now join us. eQ is the largest domestic
securities broker on the OMX Nordic Exchange in Helsinki and has been known as
the best online securities broker in Finland for several years. This important
addition to our group will enable Straumur-Burdaras to sooner reach its
strategic objective of becoming a leading Nordic investment bank.” 

Straumur-Burdaras' intention is that eQ will continue as an independent part of
the Straumur-Burdaras Group, with its present name and without significant
changes to its operations. The CEO of eQ and other directors who sold their
shares will continue to work for eQ for at least two years. 

“I am convinced that this acquisition is excellent for our customers, personnel
and shareholders. Although the business of eQ will continue without significant
changes, Straumur-Burdaras' equity base will provide the opportunity to develop
the services of eQ faster on various markets”, states Mr Antti Mäkinen, CEO of
eQ. 
	
Considering also that Straumur-Burdaras has acquired the majority in eQ, the
Board of Directors recommends the shareholders and holders of option rights to
accept the mandatory tender offer. The recommendation is given assuming that no
better offer will be made during the tender offer period. 

Straumur-Burdaras will host a press conference which will take place in the 
Bank's headquarters today at 16:30 at Borgartún 25, 101 Reykjavík. 

For further information:
Fridrik Johannsson, CEO, Straumur-Burdaras Investment Bank hf, tel. +354 580
9100 
Jóhanna Vigdís Gudmundsdóttir, Director of Corporate Communications at
Straumur-Burdaras, tel. +354 840 9133 
Antti Mäkinen, CEO, eQ Corporation,  tel. +358 9 681 781 or +358 50 5611 501