At a meeting held today, the Board of Directors of Straumur-Burdaras Investment Bank (“Straumur”) resolved, pursuant to the authorisation contained in Article 4, Paragraph 1 of the Company's Articles of Association and the resolution of the shareholders' meeting of 8 March 2007, to record the Bank's share capital in euros instead of Icelandic krónas. The change will take effect on 20 September 2007. The last date trading of Straumur shares will take place in Icelandic krónas is 19 September. As of the following day, 20 September, trading will be carried out in euros. Pursuant to law, the conversion of share capital will be carried out using the closing exchange rate of the euro on 31 December 2006. Straumur's share capital will therefore total EUR 109,493,129 instead of ISK 10,359,144,971. It will be divided into 1,094,931,294 shares, of EUR 0.10 each(10 euro cents), instead of 10,359,144,971 shares of ISK 1 each. Shareholdings that do not correspond to a whole number after the conversion will be rounded up to the nearest whole number, and Straumur's own shares will be used to satisfy any balance required for the approximation. According to this method, a shareholder who owns 100,000 shares of nominal value at ISK 1 prior to the conversion will receive 10,570 shares of nominal value EUR 0.10 (10 euro cents) when the conversion takes effect (10,569.70 rounded up to 10,570). The conversion will not change shareholders' ownership proportions within the Company and, as such, will not affect the value of each shareholder's holding. Further information can be obtained from: Haukur Hauksson, Director of Investor Relations, at +354 858-6744, or by e-mail: haukur.hauksson@straumur.net Jóhanna Vigdís Gudmundsdóttir, Director of Corporate Communications, at +354 840-9133 , or by e-mail: johanna@straumur.net