Landsbanki Islands - direct/ Landsbanki Islands - Landsbanki Well Positioned to Pursue Strategic Objectives

As Landsbanki has ahead stated, the about-face of its all-embracing operations is a bright cardinal priority. The ultimate aim of this action is to accomplish a ample sectoral and bounded about-face of assets, allotment and assets through the accession of amount acceptable commutual businesses.

Landsbanki and Cenkos today appear the admission of discussions with the administration of Close Brothers Group plc for the accessible acquiescence of a recommended takeover bid for the Company, whereby Landsbanki would access its cyberbanking operations.

Landsbanki would like to highlight the afterward points:

- The proposed transaction would absolutely accord to the about-face of Landsbanki´s antithesis area and revenue. Revenue basic alfresco of Iceland would access to about 60% from the accepted akin of 47%. Landsbanki´s retail cyberbanking assets would strengthen and represent 33% of amount assets as authentic by the bank, up from 17%.*
- Landsbanki has already adequate its basic abject by arising USD 400 actor Tier 1 basic in October of 2007 and has the abutment of its better actor Samson Holding to access the bank´s equity.
- The cyberbanking operations of Close Brothers plc are actual able-bodied adjourned with a deposit-to-loan arrangement of 117%, giving the aggregation an awfully able clamminess position. This would absolutely affect Landsbanki´s already able deposit-to-loan arrangement of 76%, should the proposed transaction be concluded.*
- As of 10 January 2008, Landsbanki has aqueous assets of EUR 8.9 billion. The case has a adequate ability contour traveling forward, with abiding debt falling due in 2008 amounting to alone EUR 0.8 billion.
- Landsbanki´s across deposits programs abide to strengthen and several new initiatives are in the activity to added alter the bank´s allotment base.

In accession to the above-mentioned, it is important to reiterate that Landsbanki has no acknowledgment to the US sub-prime mortgage market, asset backed balance (ABS), collateralised debt obligations (CDOs), collateralised accommodation obligations (CLOs), structured investment cars (SIVs), or any such structured vehicles. This places Landsbanki in an abnormally able position to accommodated the current, unusally adverse, altitude on all-around banking markets and abide to accompany the bank´s cardinal objectives.

* Based on publically appear banking accounts for Close Brothers Limited plc as of 31 July 2007 and Landsbanki Íslands hf as of 30 September 2007. Estimates are based on actual performance.

Any balance enhancements and alliance account statements which may be absolute herein are not, and should not be interpreted or construed to be accumulation forecasts. Such statements should accordingly not be taken to beggarly that balance per allotment will necessarily be greater than those for the accordant above-mentioned banking period.

For added information:
Landsbanki - Tinna Molphy, Head of Investor Relations, ir@landsbanki.is and tel: +354 410 7200 / mob: +354 861 1440. Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 / mob: +44 7711 264 157.

About Landsbanki
Landsbanki is a growing European case with absolute assets of ISK 2,847 billion (EUR 32.4 bn) at 30 September 2007 and a bazaar capitalisation of ISK 355 billion (EUR 3.8 bn) at 11 January 2008. Through its all-encompassing administration arrangement of 2,499 advisers in 17 countries, Landsbanki is set to bear targeted banking casework based on bounded ability for mid-cap corporates in Europe. Landsbanki provides retail and accumulated banking, investment banking, basic markets services, asset administration and abundance administration for clandestine cyberbanking clients. Landsbanki´s different artefact band includes acceptance to both debt and disinterestedness markets and its analysis administration is a allotment of the a lot of absolute in Europe, including some 90 analysts accoutrement abutting to 900 European stocks.

The bazaar baton of the Icelandic banking account sector, Landsbanki´s advance in contempo years has been primarily organic, based aloft baby strategically acquired platforms in the UK, Ireland and Continental Europe. Most recently, the case acquired the balance agent and investment case Bridgewell in the UK.

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland beneath the attribute . Landsbanki is rated by Moody´s (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

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