Straumur initiates work on a debt restructuring plan together with its creditors

30 March 2009

On 19 March, 2009 Straumur Burdaras Investment Bank hf. (Straumur)
was granted an authorisation for a moratorium process from the
District Court of Reykjavík. The process enables Straumur to
facilitate a financial and operational restructuring in co-operation
with the bank's creditors.

Since 19 March Straumur management has met regularly with its major
creditors and presented a restructuring plan for the company. As a
result of these discussions the major creditors have agreed to
participate in the restructuring process. Such process includes a due
diligence of the assets and liabilities, establishment of the future
business plan for the company and addressing the legal issues related
to the structuring of the future platform.

Major creditors, including both Icelandic and international banks,
are in the process of forming a Creditors Coordination Committee, and
Straumur will appoint this committee to lead this work together with
its management, and the bank's Resolution Committee.

The plan aims at re-establishing Straumur as a company which the main
purpose would be to manage its assets and liabilities in order to
maximize value for the benefit of its creditors and other
stakeholders of the company. The aim is to complete this work within
the announced moratorium process.

For further information contact:
Georg Andersen
Head of Corporate Communications
Tel: +354 5856707
georg@straumur.com