Update on Straumur's position

Straumur-Burdaras Investment Bank hf. (Straumur, the Bank) wishes to
provide the following information on its position in light of recent
events in Iceland:

Straumur's capital adequacy ratio (CAD) is currently in excess of
20%, compared with the legal minimum of 8%. The Bank is managing its
liquidity tightly and continues to meet all its obligations as they
fall due.

Straumur had a positive net positition with Landsbanki Islands hf.,
Glitnir banki hf. and Kaupthing banki hf. on derivatives and debt
instruments.

The Central Bank of Iceland informed Straumur on 20 October 2008 that
as of 22 October 2008 it would introduce a 50% haircut on unsecured
securities issued by the three aforementioned banks that have been
used as collateral in repo transactions with the Central Bank. In
response to this, Straumur has posted additional collateral with the
Central Bank to the amount of approximately ISK 18.3 billion, which
the Central Bank has accepted today.

William Fall, CEO of Straumur:"The strategy we have carried out for the past 18 months or so has
enabled Straumur to manage through this difficult period. First, we
have reduced our balance-sheet and instead placed more emphasis on
client-driven income, which has also reduced our funding
requirements. Second, we have developed an international platform and
thus significantly reduced our reliance on Iceland. In the first half
of this year for instance, two-thirds of our operationg income came
from outside Iceland. Market conditions are still unfavourable to
banks in general but our exceptionally strong CAD ratio and
relatively limited funding needs work in our favour."

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

Georg Andersen
Senior Vice President
Head of Corporate Communications
Tel: +354 858 6707
e-mail: georg.andersen@straumur.net

About Straumur
Straumur (STRB) is a Northern and Central European investment bank
offering 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 has total assets of €6,201m as at the end
of Q2 2008 and a long-term investment rating of BBB- from Fitch.
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 a team of 520
people. Straumur is rapidly delivering against its objectives to
become the leading investment bank in Northern and Central Europe.
www.straumur.com