Acquisitions from Landsbanki cancelled

As announced on 1 October 2008, Straumur-Burdaras Investment Bank hf.
(Straumur) and Landsbanki Islands hf. (Landsbanki) signed an
agreement whereby Straumur acquired, subject to the approval of
relevant regulatory and competition authorities, the majority of
Landsbanki's overseas corporate finance and brokerage platforms for a
consideration of €380m. The agreement applied to 100% of Landsbanki
Securities (UK) Limited and Landsbanki Kepler, as well as
Landsbanki's 84% stake in Merrion Landsbanki.

On 7 October 2008, Landsbanki announced that the Icelandic Financial
Services Authority (FME) had decided to take over the powers invested
in Landsbanki's shareholders meeting and Landsbanki's Board of
Directors. Furthermore, that the FME had appointed a receivership
committee which had assumed the role of Landsbanki's Board of
Directors with immediate effect.

Furthermore, UK authorities announced on 8 October 2008 that they had
taken steps to freeze assets of Landsbanki in the UK.

It has become clear that Landsbanki will not be in a position to
fulfil its obligations under the share purchase agreement.

For these reasons, Straumur has today notified Landsbanki that the
share purchase agreement is cancelled.

For further information contact:
Ólafur Teitur Gudnason, Vice President, Media Relations
Corporate Communications
Tel: +354 858 6778
E-mail: olafur.gudnason@straumur.net

About Straumur:
Straumur-Burdaras Investment Bank hf. offers a complete range of
integrated financial services focusing on small and medium sized
companies, institutional investors and individuals. The services
provided include capital markets, corporate finance, debt finance,
and asset management.
Headquartered in Reykjavík, Straumur is Iceland's largest pure-play
investment bank. The Bank had total assets of €6,201m as at the end
of Q2 2008. Through organic growth and strategic acquisitions, the
Bank has established operations in ten countries including the UK,
Denmark, Sweden, Finland and the Czech Republic and now employs 520
people. Website: www.straumur.com.