Kaupthing Bank

Kaupthing Bank (STO:KAUP) Kaupthing's Resolution Committee has in recent weeks worked on an agreement with the German government on paying deposits back to customers of Kaupthing EDGE in Germany, and it is hoped that payments can be made within the next few days or weeks. Representatives of Kaupthing's Resolution Committee will meet with representatives of the German Ministry of Finance and the German Financial Supervisory Authority regarding this matter next week.

Kaupthing Bank (STO:KAUP) The resolution committee of Kaupthing Bank hf. has sent a request to the OMX Nordic Exchange in Iceland that the company's shares be removed from trading in accordance with Article 24, paragraph 2, of Act no. 110/2007 on Stock Exchanges.

Kaupthing Bank (STO:KAUP) Kaupthing Bank's Resolution Committee met today for the first time with representatives of large creditors of the bank (Informal Creditors' Committee). The meeting was constructive and it is anticipated that another meeting will be held within a month. The Resolution Committee looks forward to working with the Informal Creditors' Committee towards a solution which maximizes recovery for all stakeholders.

Kaupthing Bank (STO:KAUP) On 9 October 2008, the Icelandic Financial Supervisory Authority ("FME") appointed a Resolution Committee of Kaupthing Bank hf. (the "Bank"), in accordance with article 5 of legislative act 125/2008 on the Authority for Treasury Disbursements due to Unusual Financial Market Circumstances etc (the"Act"). The Act was passed by Parliament on 6 October 2008, providing the FME with the authority and power to intervene in the operations of financial undertakings with the aim of responding to the unusual circumstances in the Icelandic financial market.

Kaupthing Bank (STO:KAUP) Statement from Sigurdur Einarsson, Executive Chairman of Kaupthing Bank:

Kaupthing Bank (STO:KAUP) Kaupthing Bank hf. has, after consulting the Icelandic authorities, discussed with the Icelandic Financial Supervisory Authority Kaupthing's involvement in the reorganization of Glitnir Bank hf. Further talks will be held over the next several days.

Kaupthing Bank (STO:KAUP) Following the extraordinary legal measures taken by the government last night, allowing the Icelandic Financial Supervisory Authority (FME ) to invervene in the operations of Icelandic financial institutions, Kaupthing would like to clarify the following:

Kaupthing Bank (STO:KAUP) Moody's Investors Service has placed Kaupthing's Aaa rated covered bonds on review for possible downgrade. The rating action follows Moody's decisions to review for possible downgrade Kaupthing's A1 long-term rating, P-1 short-term rating and C- bank financial strength rating ("BFSR").

Kaupthing Bank (STO:KAUP) Moody's Investors Service has today placed the credit ratings of Kaupthing Bank hf. ("Kaupthing") on review for possible downgrade. The Bank's long-term rating of A1 and financial strength rating (BFSR) of C- have been placed on review for possible downgrade, while Kaupthing's short-term rating of P-1 has been affirmed by Moody's.

Kaupthing Bank (STO:KAUP) Fitch has today downgraded Kaupthing Bank's credit ratings. The Bank's Long-term Issuer Default Rating (IDR) is downgraded from A- to BBB and the Bank's Short-term IDR is downgraded from F2 to F3. The Bank's support rating is affirmed at 2, Individual rating is downgraded from B/C to C, and Support Rating Floor is downgraded from BBB to BBB-. All ratings are placed on Rating Watch Negative.