Glitnir sells mandatory convertible bonds for ISK 15bn ($ 200m)

Glitnir successfully issued and sold an ISK 15bn ($200m) five year
mandatory convertible bonds in a closed offering to Icelandic
institutional investors, which commenced on 12 March ending
yesterday. The bonds are subordinated and count as Tier 1 capital and
strengthen the bank's capital ratio considerably.  Glitnir Capital
Markets was sole manager of the offering.

Glitnir CEO, Lárus Welding, was pleased with the successful issue."The convertible issue was successfully concluded in the face of
uncertain market conditions and demonstrates investors trust in
Glitnir's underlying operation and credit.  The issue was focused on
Icelandic institutional investors which know the bank, in particular
the pension funds, and was well received by the market", said Lárus
Welding.

The bonds will convert into shares in Glitnir banki hf in five years.
The issue of the bonds and the authorisation for the increase in
share capital is subject to the approval of a shareholders' meeting,
which will be held on 19 March 2008 at Glitnir banki hf.
headquarters.

For further information:
Bjørn Richard Johansen, Managing Director, Global Corporate
Communication, mobile +47-47 800 100, e-mail: brj@glitnir.no

Már Másson, Executive Director, Iceland, Corporate Communications,
mobile: 354-844 4990, e-mail: mar.masson@glitnir.is

Vala Pálsdóttir, Head of IR, mobile: +354 440 4989, mobile: +354 844
4489,
e-mail: vala.palsdottir@glitnir.is.


About Glitnir Bank
Glitnir is a Nordic bank, with headquarters in Iceland and operations
in ten countries. Our home markets are Iceland and Norway where we
offer a broad range of financial services, including corporate
banking, investment banking, capital markets, investment management
and retail banking. Outside of our home markets we have operations in
Finland, Sweden, UK, Luxembourg, US, Canada, China and Russia. We
will furthermore open an office in India in the second half of 2008.
Our international expansion is mainly driven by two specialized
industry sectors - Seafood and sustainable energy - in which we have
developed significant industry expertise built on our Icelandic and
Norwegian heritage. Our shares are listed on OMX in Iceland under the
symbol, GLB.