Stodir´s moratorium extended


Today the District Court of Reykjavik approved Stodir‘s request for an
extension to the moratorium until 6 April 2009.  Stodir´s largest creditors had
previously declared their support for the extension of the moratorium. 

Stodir‘s management and the Company‘s administrator held a presentation for
Stodir‘s creditors on 16 January. The presentation included preliminary
information on Stodir's current financial situation and a summary of
developments during the last three months.  During the past few months the
management has focused on protecting the interest of its creditors. Stodir has
attempted to divest some of the Company's unlisted assets, but without success.
 The Company has also managed to hold off divesting its listed assets during a
period of exceptionally low market value.  A lot of work has been put into
assisting companies in Stodir's asset portfolio as Stodir's current financial
situation and the economical status of Iceland has put them in a difficult
position.  Stodir's management team has had many meetings with the Company's
creditors, of which some are currently also in a moratorium or bankrupt, which
has impeded the whole process considerably.  For the past few months, the
Company's operations have been limited, the London office has been closed and
all employees have been laid off.  During the past weeks, a total of eight
employees have worked for the Company. 

Stodir's asset portfolio has sustained a considerable setback during the past
months after the Company was heavily impacted when the Icelandic government
seized control of the Company's largest asset, Glitnir. For the past six months
the Company's assets have decreased in value by approximately ISK 200 billion. 
According to preliminary evaluation of the total value of the Company's assets
at 31 December, the Company's equity is negative by ISK 111 billion.  It is
therefore evident that if no actions are taken, the Company will become
bankrupt. 

At the meeting with creditors on 16 January, Stodir's management team concluded
that bankruptcy would not serve the creditors' best interest.  If bankrupt, the
operations of companies in Stodir's asset portfolio would be affected and the
value of the Company's assets would decrease significantly. The management team
has presented the Company's creditors with a draft of a plan to restructure the
Company.  The plan stipulates that the share capital of current shareholders
would be written off entirely and that creditors would convert part of the 
Company's debt into share capital.  The extension of the moratorium enables the
management team of Stodir to work further on restructuring the Company in close
collaboration with its creditors. 




Further information:

Julius Thorfinnsson
Head of Corporate Communications
Telephone: +354 591 4400
E-mail: julius@stodir.is

Further information on Stodir can be found on the Company‘s website,
www.stodir.is