- Share capital in Sparisjódur Mýrasýslu increased

The board of directors of Sparisjódur Mýrasýslu (SPM) has resolved to propose
to a meeting of shareholders that the company's share capital be increased by
ISK 2 billion. The board of SPM has also resolved to propose that the
municipality of Borgarbyggd waive its rights to subscribe for new share capital
but that it remain a shareholder with a holding of approximately 20% after the
increase. Kaupthing Bank has undertaken to subscribe for ISK 1,750 million and
other investors for ISK 250 million. Kaupthing has also undertaken to locate a
buyer on behalf of SPM for SPM's 8.73% stake in Icebank hf. 

After the share capital increase, Kaupthing will own 70% of the SPM share
capital, the municipality of Borgarbyggd 20% and other investors 10%. 

The shareholders' meeting at which the board's proposal will be submitted is
scheduled for Friday 15 August. 

"Business has been difficult for SPM in the first half of the year owing to the
turmoil on the financial markets."  The injection of new share capital will
reinforce the financial foundations of SPM, and it will continue to provide its
clients with a high level of service," says Gísli Kjartansson, managing
director. 

"The board of SPM welcomes the fact that SPM's financial foundations are solid
and that Kaupthing has decided to participate in the share capital increase.
The board has high hopes for its collaboration with Kaupthing," says Sigurdur
Már Einarsson, chairman of SPM's board of directors. 

The share capital increase is dependent on the approval of SPM's creditors, the
Icelandic Financial Supervisory Authority and the Icelandic Competition
Authority. 


For further information please contact:

Sigurdur Már Einarsson, chairman on the board of directors of SPM on 861 2855
Gísli Kjartansson, managing director of SPM on 430 7507