Name of party notifying: Landsbanki Íslands hf Address of the party notifing: Austurstræti 11 Date of transaction: 25.5.2007 Number of shares in transaction: 9.444.734 Number of shares before the transaction: 360.637.609 Number of shares after the transaction: 351.192.875 Holdings of total nominal value before the transaction %: 10,10% Holdings of total nominal value after the transaction %: 9,84% Notification is based on: Art. 33 (1) of the Act no. 33/2003 point(s) no.1. Additional information: After the transaction a total of 244.568.727 shares, a 6,85% stake, is held in Landsbanki's books as a hedge against forward contracts.