Kaupthing Bank - Kaupthing Bank's after-effects for 2007

Kaupthing Bank letters net balance of ISK 70.0 billion (EUR 799 million).

- Shareholders' net balance for 2007 of ISK 70.0 billion - (ISK 85.3 billion in 2006)
- Shareholders' net balance for fourth division of ISK 9.8 billion - (ISK 18.1 billion in aforementioned aeon of 2006)
- Return on disinterestedness in 2007 of 23.5%.
- Earnings per allotment of ISK 95.2 (ISK 127.1 in 2006). Earnings per allotment for fourth division of ISK 13.4 (ISK 26.1 in Q4 2006)
- Net absorption assets in the fourth division up by 60.3% YoY to ISK 23.7 billion
- Net fee and agency assets in the fourth division grew by 19.0% YoY to ISK 14.1 billion
- Financial accident in Treasury of ISK 11.6 billion in the fourth quarter, primarily due to the abatement in the fair amount of acquired contracts, bonds and asset-backed securities
- Total assets of ISK 5,347.3 billion (EUR 58.3 billion) at year-end, accretion by 35.8% at a anchored barter amount during the year and by 31.9% in ISK
- Deposits as a allotment of absolute loans to barter added decidedly in 2007, from 29.6% at the alpha of the year to 41.8% at the end of the year
- In ablaze of the alternation on the banking markets, Kaupthing Bank and the sellers of NIBC accept appear their accommodation not to advance with the proposed accretion by Kaupthing Bank of NIBC
- The Board of Directors will adduce at the shareholders' affair that a allotment of ISK 14,810 actor be paid out for 2007, agnate to ISK 20 a share, or 21% of net earnings.

Hreidar Már Sigurdsson, CEO
"Kaupthing enjoyed a acceptable 2007; the year started decidedly acerb but the abatement on the all-embracing banking markets larboard its mark on the additional bisected of 2007. Return on disinterestedness was 23.5%, a a lot of satisfactory figure. The Bank is assuming able-bodied in all its amount business areas, and absorption assets during the fourth division was the accomplished yet recorded.

The adverse operating ambiance has led to a about-face in focus in operations, and the advance of the Bank's antithesis area is set to apathetic down this year. Management's prime focus is now on breeding agency assets and maximising efficiency. Funding is accepting adapted and the Bank is now agreement accretion accent on deposits. A new online bead case was alien during the fourth quarter, Kaupthing Edge, which has already been launched in 5 countries. In the endure four months, about 30,000 barter accept placed deposits with the Bank.

Kaupthing has accomplished an acceding with J.C. Flowers not to advance with the accretion of Dutch case NIBC attributable to the abrogating bearings on the banking markets. The planned allotment affair will accordingly no best be demography place. While this development is black for the Bank's stakeholders, the accommodation about decidedly reinforces Kaupthing's clamminess position, which is now actual robust."

Further information
For added advice on the after-effects amuse acquaintance Jónas Sigurgeirsson, Chief Communications Officer on +354 444 6112 or Ólöf Hildur Pálsdóttir, Investor Relations, on +354 444 6569 (ir@kaupthing.com). Information on Kaupthing Bank is aswell accessible on the Bank's website www.kaupthing.com.

About Kaupthing Bank
Kaupthing Bank offers absolute bartering and investment cyberbanking casework to individuals, companies and institutional investors. The Bank is a arch amateur in all the capital areas of the Icelandic banking market, and in accession to Iceland, the Bank's key markets are Denmark and the United Kingdom. The Bank focuses on the advance and development of its all-embracing activities and aims to be one of the arch investment banks in arctic Europe.

Kaupthing Bank operates in thirteen countries with its address amid in Reykjavík. The Bank's capital subsidiaries are FIH Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing Bank in Finland, Norvestia Oyj in Finland, Kaupthing New York, Kaupthing Switzerland, Kaupthing Bank Belgium and Kaupthing Bank Norge in Norway. The Bank aswell has activities in Isle of Man, the United Arab Emirates (Dubai) and Qatar. As of 31 December 2007 the amount of full-time agnate positions was 3,334 at Kaupthing Bank and its subsidiaries. www.kaupthing.com