Kaupthing Bank hf. has issued subordinated bonds for the amount of USD 400 million classified as Tier 1 capital according to regulation no. 156/2005 on additional own funds items for financial undertakings. These are perpetual bonds carrying a fixed coupon of 9.00 per cent, which is equivalent to the financing cost of three-month US dollar LIBOR +275 bps, and are callable by Kaupthing Bank five years after the date of issue, provided that the conditions of the above mentioned rules are met. The bonds, which were targeted at retail investors, were sold to 97 investors from 14 countries. The bookrunners were Citigroup, Credit Suisse, Deutsche Bank and Merrill Lynch. Further information: Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112