18.02.2008 Pursuant to a resolution of the Board of Directors of Straumur-Burdaras Investment Bank hf. (“Straumur”) the bank has today granted options to buy 200.000.000 Straumur shares to its management and key employees. Thereof the CEO and members of the senior executive management were granted 156.000.000 share options. The share options are structured in the following manner: Strike price: ISK 12,42 (The price is average of the closing price for each of the previous five trading days leading up to the Award date). Award date: 18.02.2008. Vesting: In three equal tranches (1/3) on the first, second and third anniversaries of the award. Option Life: Four years after the award, until 18.02.2012. An option expires if an awarded employee resigns or employment is otherwise terminated Exercise style: Once vested, the option can be exercised until the end of the Option Life except during restricted compliance-driven periods, if any. As of today Straumur has a total of 488.591.450 share options outstanding which have been granted to senior management and key employees. This announcement is made pursuant to article 126(2) of the Securities Trading Act no. 108/2007.