- The Icelandic Financial Supervisory Authority's decision on the disposal of deposits with Straumur


The Icelandic Financial Supervisory Authority (FME) has decided on the disposal
of deposits with Straumur Burdaras Investment Bank hf. (Straumur) with respect
to deposits in the bank's Reykjavík Office.  The Deposits will be allocated to
Íslandsbanki hf. according to the balance and interest earned on the date of
the takeover, which will be 20 March 2009, subject to certain limitations
specified in the FME's decision. Terms for the deposits in question regarding
duration, interest terms, currency, et cetera will remain unchanged with
Íslandsbanki hf. 

According to the FME's decision Straumur will issue a bond as a repayment for
the deposit obligations taken over by Íslandsbanki hf. According to the FME all
assets of Straumur will be put as a collateral for the bond. 

Information on the FME's decision can be found on its website: 
http://www.fme.is/?PageID=581&NewsID=402