With regards to XL Leisure Group

Despite considerable financial restructuring efforts over a sustained
period, XL Leisure Group Plc. ("XL", "the Company"), a substantial UK
airline and travel business, has gone into Administration.
Straumur-Burdaras Investment Bank hf. ("Straumur", "the Bank") has
had a good lending relationship with XL for a number of years and
deeply regrets this recent development.

The problems facing the airline industry in general are well
documented and Straumur has been working closely with XL's management
towards a solution to the difficulties facing the Company. The Bank
has also committed significant additional funds in recent weeks to
support the business and its management team.

Straumur's current exposure to the company amounts to EUR 45m. It is
not clear at this stage to what extent this may be recovered. While
the amount is not insignificant, it is limited in the context of
Straumur's capital base of €1.5bn.

An agreement has been reached whereby Straumur has acquired XL's
German and French subsidiaries, which Straumur considers to be
financially viable and sustainable businesses. They will continue
operations as separate commercial entities. It is Straumur's full
intention to support their operations and the Bank will in due course
review its options with regards to these holdings.

For further information contact:

Ólafur Teitur Gudnason
Vice President, Media Relations
Straumur-Burdaras Investment Bank hf.
Tel: +354 858 6778
e-mail: olafur.gudnason@straumur.net

Ed Gascoigne-Pees
Managing Director, Financial Communications
Financial Dynamics
Tel: +44 (0) 7884 001 949
e-mail: ed.gascoigne-pees@fd.com