The financial services group Exista is announcing today that it will exercise its rights in Kaupthing Bank's forthcoming share rights issue, which is a part of the financing for the acquisition of the Dutch bank NIBC. Exista, the largest shareholder in Kaupthing Bank, has pre-committed to subscribe for its full rights (approximately 13 million shares) in the issue, which is expected to take place prior to the end of the first quarter of 2008. Up to 210 million new Kaupthing Bank shares will be issued in relation to the acquisition of NIBC, including 70 million shares in the form of a rights issue. Exista has agreed in principle to underwrite up to 50% of the rights issue, or a total of 35 million shares (including the 13 million shares already subscribed for). The equity increase will dilute Exista's shareholding from more than 23% to approximately 20-22% after the rights issue. A consortium of shareholders led by J.C. Flowers & Co has agreed in principle to underwrite the remaining 50% of the rights issue. Lydur Gudmundsson, Executive Chairman of Exista: “As Kaupthing Bank's largest shareholder over the past six years, we have gained greatly from supporting and participating in Kaupthing's expansion strategy. We believe the acquisition of NIBC will significantly fortify Kaupthing Bank's leading position in financial services for SMEs and affluent individuals in Northern Europe. We are therefore determined to exercise our rights in this offering, and we welcome the opportunity to participate in the underwriting of the rights issue.” Enquiries: Exista hf. Sigurdur Nordal Managing Director Group Communications ir@exista.com +354 550 8620 / +354 860 8620 About Exista Exista is a financial services group with operations in the areas of insurance, asset finance and investments. The company is a leading insurance underwriter in Iceland, as well as being the country's largest provider of asset finance products. As an international investor, Exista has strategic holdings in several companies, including Sampo Group, Kaupthing Bank, Bakkavör Group, and Skipti (Iceland Telecom). Exista is listed on the OMX Nordic Exchange in Iceland and its shareholders number over 30 thousand. Information on Exista can be found on the group's website: www.exista.com