Straumur-Burðarás Fjárfestingabanki hf. - Company Announcement

Fitch downgrades Straumur

Fitch Ratings has today downgraded Straumur-Burdaras Investment  Bank
hf.  following  yesterday's  announcement  that  the  government   of
Iceland, through the intermediation of  the Central Bank of  Iceland,
will provide Glitnir Banki hf. with  new equity and take a 75%  stake
in Glitnir Banki hf.

Straumur's Long-term  Issuer Default  rating (IDR)  is downgraded  to
'BB+' from 'BBB-'; the Short-term IDR is downgraded to 'B' from 'F3';
and the Subordinated  debt is  downgraded to 'BB'  from 'BB+'.  These
three ratings are placed on Rating Watch Negative.

However, Straumur's Support  rating is affirmed  at '3'; the  Support
Rating Floor  is affirmed  at  'BB-'; and  the Individual  rating  is
affirmed at 'C/D'.

For further details on the rating action see the attached
announcement from Fitch Ratings.

For further information contact:
Georg Andersen, Senior Vice President
Head of Corporate Communications
tel: +354 858 6707
e-mail: georg.andersen@straumur.net

Ólafur Teitur Gudnason, Vice President, Media Relations
Corporate Communications
tel: +354 858 6778
e-mail: olafur.gudnason@straumur.net

Attachments:

Fitch - September 2008.pdf