Kaupthing Bank Luxembourg S.A., a subsidiary of Kaupthing Bank hf., has signed an agreement by which Kaupthing Bank Luxembourg S.A. purchases Robeco Bank Belgium. Robeco Bank Belgium is a small Belgian bank that was founded in 2002 and focuses mainly on private banking and asset management. The bank has 32 employees and is based in Brussels and Antwerp. Robeco Bank Belgium has 6,800 clients. At the end of August 2007, the part of client's assets placed as deposits amounted to approximately EUR 300 million. This acquisition will have an insignificant effect on Kaupthing Bank Luxembourg's operations. Magnus Gudmundsson, Managing Director of Kaupthing Bank Luxembourg: “Robeco Bank Belgium represents a good strategic fit for Kaupthing Bank Luxembourg. This acquisition is a logical step in building up Private Banking offerings in the Benelux countries. By taking over the activities of Robeco Bank we become immediately operational in Belgium and will have a platform there for further growth.” The transaction is subject to the approval of the Luxembourgish and the Belgian Financial Supervisory Authorities. The acquisition is expected to be closed before year end. For further information please contact: Jónas Sigurgeirsson, Chief Communications Officer, tel +354-444 6112