Name of party notifying: Landsbanki Íslands hf Address of the party notifing: Austurstræti 11 Date of transaction: 31.8.2007 Number of shares in transaction: 18.671.645 Number of shares before the transaction: 573.324.249 Number of shares after the transaction: 554.652.604 Holdings of total nominal value before the transaction %: 5,12% Holdings of total nominal value after the transaction %: 4,96% Notification is based on: Art. 33 (1) of the Act no. 33/2003 point(s) no.1. Additional information: After the transaction a total of 367.179.782 shares, a 3,28% stake, is held in Landsbanki's books as a hedge against forward contracts. Major Holdings announcement in accordance with Art. 34 (5) of the Act. no. 33/2003