Landsbanki Islands - direct/ Landsbanki Islands (UK) - Landsbanki Issues Tier 1 Capital in the US

On Friday 12 October 2007, Landsbanki bankrupt a USD 400 actor non-cumulative undated basic addendum transaction, targeted at institutional investors in the U.S. market. The addendum are abiding with a alarm 10 years from the affair date. The affair has a advertisement of 7.43% which is agnate to 3-month USD LIBOR + 213bps. Joint advance managers in the transaction were Citigroup, Credit Suisse and JP Morgan.

The accord admiring able absorption from the U.S. institutional broker abject as able-bodied as from European investors, area 92% of broker accord was from the U.S. A absolute of 32 investors alternate in the issue. Due to the actuality that the accord was added than alert oversubscribed, the accord was added from the planned USD 300 actor to USD 400 million.

Brynjólfur Helgason, Managing Director for International Banking said "The capital purpose of this alms was to added strengthen Landsbanki´s basic arrangement to axle for Balance Sheet growth. We saw an befalling in the bazaar in band with our objectives this year and were actual admiring to see the broker absorption in this issue. This acutely underpins Landsbanki´s connected able performance."

Further Information:

Landsbanki - Brynjólfur Helgason, Managing Director International Banking & Alternate CEO, Tel: +354 820 6340
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 2,597 billion (EUR 30.8 bn) at 30 June 2007 and a bazaar capitalisation of ISK 477 billion (EUR 5.6 bn) at 12 October 2007. Through its all-encompassing administration arrangement of 2,317 advisers in 16 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).