Kaupthing Bank hf. (“Kaupthing”) and SPRON hf.(“SPRON”) have decided to enter negotiations on a possible merger between the companies. Negotiations are expected to be completed in approximately four weeks. Any merger of the companies is subject to the approval of a SPRON shareholders' meeting, the Board of Directors of Kaupthing, the Icelandic Financial Supervisory Authority, the Icelandic Competition Authority and the companies' creditors. For further information please contact Guðmundur Hauksson, CEO of SPRON, tel: +354 550 1213