Straumur-Burdaras Investment Bank hf.- share-based incentive program

16 February 2009

Under a group-wide share based incentive program, Straumur-Burdaras
Investment Bank hf. (Straumur) has today granted its employees and
management options to buy a total of 650.000.000 shares in Straumur
("Share Options"). Thereof members of the Management Committee were
granted 296.000.000 Share Options. The objectives of the incentive
program and the principles for granting options are set out in
Straumur's remuneration policy as approved by the Annual General
Meeting on 15 April 2008. The Share Options are structured in the
following manner:

Exercise price:
The Exercise price of the Share Options is ISK 1.67. The Exercise
price is based on the average trading price for the previous twenty
trading days leading up to the Award date.

Award date:
16.02.2009

Exercise period (vesting):
The Share Option will vest in three equal tranches (1/3) on the
first, second and third anniversaries of
the Award date. The Share Options are valid until the fifth
anniversary of the Award date.

Share Option Life:
The Share Options Life expires five years after the Award date. The
Share Options expire if an awarded employee resigns or employment is
otherwise terminated.

Exercise style:
Once vested, the Share Options can be exercised until the end of the
Share Option Life except during restricted regulatory-driven periods.

This announcement is made pursuant to article 2.16 of the Rules for
Issuers of Financial Instruments, issued by NASDAQ OMX ICELAND HF.

For further information contact:
Georg Andersen
Senior Vice President, Head of Corporate Communications
Tel: +354 585 6707
E-mail: georg@straumur.com