- Kaupthing Bank raises equivalent of EUR 1.3 billion in long-term funding

Kaupthing Bank has concluded a series of bond private placements totalling USD
1,675 million (EUR 1.1 billion) to investors in the US and Europe. Kaupthing
has also finalised a bilateral loan of EUR 195 million with a European bank. In
comparison the Parent Company has only about EUR 1.1 billion of long-term
redemptions for the remainder of the year and FIH has EUR 1.8 billion. The
terms of the aforementioned funding are considerably below the Bank's current
CDS levels in the market and have a maturity ranging from 1 to 7.5 years. 

This new funding of EUR 1.3 billion adds to the strong liquidity position,
which is further supported by the fact that Kaupthing Singer & Friedlander will
be exiting its Asset Finance and Commodity Trade Finance businesses in the UK
(announced on 25 February), which is expected to free up liquidity in excess of
GBP 1 billion (EUR 1.3 billion) in 2008. Further funding this year will be
aimed at financing the modest growth of the Bank and pre-funding the year 2009. 


Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 or Jónas Sigurgeirsson -
Chief Communications Officer, +354 444-6112