Kaupthing Bank hf. launched a 2.3 billion Mexican peso (USD 200 million equivalent) bond transaction yesterday. This is Kaupthing's first bond issue in Latin America and first ever public issue by a Nordic bank in Mexico. The bond has a maturity of five years and pays a coupon of TIIE +25bps or equivalent to three month USD LIBOR + 72bps. The issue followed a recent successful road show to Mexico city and Monterrey. Joint lead managers in this transaction were BBVA Bancomer and Lehman Brothers. Gudni Adalsteinsson Chief Treasurer "This bond issue into the Mexican market is a part of our stated strategy of diversifying our funding sources. We are happy with the market acceptance and comfortable with the price." Further information: Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126 Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112