- Landsbanki Acquires Remaining Shares of Kepler Equities│Landsbanki


Landsbanki has acquired the remaining shares of Kepler Equities SA, now Kepler
Equities│Landsbanki. As announced in September 2005, Landsbanki acquired 81% of
the total shares of Kepler, a European securities company, previously known as
the Julius Bär Brokerage. This transaction brings to a close Landsbanki's
earlier agreement to acquire the remaining shares over a five-year period. The
financial effects of the transaction are insignificant. 
 
Landsbanki's growth in recent years has been primarily organic, based upon
strategically acquired platforms in the UK, Ireland and Continental Europe. The
Kepler transaction was instrumental in creating a Pan-European operational
platform to accelerate Landsbanki's progress towards developing its corporate
and investment banking offering to the mid-cap market in Europe. The bank's
unique product line includes access to both the debt and equity markets. For
the first time in 2006, more than 50% of Landsbanki's revenues derived from
overseas, through diversification of the bank's income streams and broadening
both sector and geographic coverage. 
 

For further information contact:

Landsbanki's CEOs Sigurjón Th. Árnason, Tel. +354 410 4009 / +354 898 0177.

Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 /
mob: +44 7711 264 157. 
 
 
About Landsbanki - www.landsbanki.com/ir

Landsbanki is a growing European bank with total assets of ISK 2,317 billion
(EUR 26.4 bn) at 31 March 2007 and a market capitalisation of ISK 421 billion
(EUR 5.0 bn) at 29 June 2007. Headquartered in Reykjavik, Iceland, Landsbanki
Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol <LAIS
IR>. Landsbanki is rated by Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1
/ B/C / Stable). 
 
Since its establishment in 1886, Landsbanki has been instrumental in the
economic development of business and industry in Iceland. Landsbanki has
positioned itself as Iceland's primary provider of general and specialised
financial services to individuals, corporate entities and institutions. The
bank holds a market share of over 30% in all major business segments and has
the country's most extensive branch network. 
 
Building on its strong foundation in Iceland, Landsbanki has successfully
extended its financial operations into new markets, focusing on serving mid-cap
corporates in Europe. The bank's unique product line includes access to both
debt and equity markets; its research department is among the most
comprehensive in Europe, including some 90 analysts covering more than 800
European stocks locally. Landsbanki and its subsidiaries now operate in all
major financial centres of Europe, and have North American representation in
New York, Winnipeg and Halifax. Through its extensive distribution network,
Landsbanki has a strong platform to deliver targeted financial services based
on local expertise.