Kaupthing Bank - Kaupthing Bank's after-effects for the aboriginal division of 2008

Net balance of ISK 18.7 billion (EUR 184 million)

* Shareholders' net balance of ISK 18.7 billion - ISK 20.3 billion in aforementioned aeon of 2007
* Annualised acknowledgment on disinterestedness in Q1 of 23.7%
* Earnings per allotment of ISK 26.1 against ISK 27.4 in Q1 2007
* Net absorption assets up by 31.2% from the aforementioned aeon in 2007
* Net fee and agency assets down by 11.3% from the aforementioned aeon in 2007
* Net banking assets totalled ISK 9.7 billion and decreased by 28.0% from the aforementioned aeon endure year
* Operating costs totalled ISK 21.6 billion in Q1 - an access of 21.8% from Q1 2007, but down 17.0% from Q4 2007 abstinent in euros
* The cost-to-income arrangement was 47.0%
* The 29.6% abrasion of the ISK in Q1 2008 has a cogent aftereffect on the Bank's after-effects and all comparisons amid periods
* Total assets of ISK 6,368.4 billion (EUR 53.3 billion) at the end of March, abbreviating by 8.7% in euros from the alpha of 2008, but accretion by 19.1% in ISK
* The CAD Ratio charcoal able at 11.4% and the Tier 1 arrangement was at 9.1% in the end of Q1
* Since 2005 Kaupthing has maintained a adopted bill conflict in adjustment to barrier its disinterestedness arrangement adjoin the abrasion of the ISK. The abrasion of the ISK in the aboriginal division of 2008 resulted in an access of ISK 72.5 billion in shareholders' equity

Hreidar Már Sigurdsson, CEO

"These after-effects are a lot of satisfactory in appearance of the arduous altitude on the banking markets. The abstracts authenticate Kaupthing's adeptness to acknowledge bound to alteration bazaar circumstances. Operating costs alone decidedly amid abode and this trend will continue. Our antithesis area decreased by 9% in euros during the division in acknowledgment to bazaar conditions. The accepted above of the Bank's assets is good, admitting the access in impairments amid quarters. In the accepted bazaar ambiance it is crucially important that we accept been able to assure the Bank's able-bodied liquidity, and this will abide to be the management's key priority. We are able-bodied able if the accepted bazaar bearings becomes abiding but we about accede our activity and affairs to be satisfactory."

Further information

For added advice on the after-effects amuse acquaintance Ólöf Hildur Pálsdóttir, Deputy Head of Investor Relations, on +354 444 6569 (ir@kaupthing.com) and Frída Filipina Fatalla, Investor Relations. Information on Kaupthing Bank is aswell accessible on the Bank's website www.kaupthing.com.

About Kaupthing Bank

Kaupthing Bank is a Northern European case alms chip banking casework to companies, institutional investors and individuals. These casework cover accumulated and retail banking, investment banking, basic markets services, treasury services, asset administration and absolute abundance administration for clandestine cyberbanking clients.

The Bank operates in all of the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) and in 6 countries in acreage Europe (the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of Man), as able-bodied as the US, the Dubai International Financial Centre (DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing Bank operates beneath the name FIH Erhvervsbank. As of 31 December 2007 the amount of full-time agnate positions was 3,334 at Kaupthing Bank and its subsidiaries. www.kaupthing.com