Straumur-Burðarás Fjárfestingabanki hf. - Tender offer

Straumur to acquire European businesses from Landsbanki

Straumur-Burdaras Investment Bank (Straumur) and Landsbanki Islands
(Landsbanki) have signed an agreement, whereby Straumur acquires,
subject to the approval of relevant regulatory and competition
authorities, the majority of Landsbanki's overseas corporate finance
and brokerage platforms for a consideration of €380m. Straumur
acquires 100% of Landsbanki Securities (UK) Limited and Landsbanki
Kepler, as well as Landsbanki's 84% stake in Merrion Landsbanki.

The consideration for this acquisition will be settled by cash, a
subordinated debt issue and a sale of loans. Following this
transaction, the bank's capital position continues to be extremely
strong with a CAD ratio in excess of 20%.

These acquisitions complement and significantly broaden the depth and
reach of Straumur's already substantial European corporate finance
and brokerage operations. The three firms being acquired employ some
680 people in 9 European countries and the United States, which
transforms Straumur and its affiliates' into an organisation
employing 1.200 people in 18 countries.

Between them, the three firms have established relationships and a
substantial client base in all the major financial centres in Europe.
They share the emphasis which Straumur's existing securities and
corporate finance business places on providing local expertise and
access to mid-cap companies. Taken together, the analysts of the
enlarged group will cover over a thousand European companies.

The combined revenues of the three companies being acquired amounted
to €232m in 2007 and the combined profit before tax was €30m.

Landsbanki Kepler - Continental Europe and US
*  Staff of 381 in 7 countries: France, Germany, Italy, The
  Netherlands, Spain, Switzerland and the United States
*  Leading European securities company with extensive local presence
*  Team of 64 analysts covering approximately 500 European companies
*  Between 2-5% estimated market share in secondary equity trading in
  respective markets
*  Other business lines include corporate finance and asset
  management

Landsbanki Securities (UK) Limited - United Kingdom
*  Staff of 196 in London and Edinburgh
*  Joint operations of former Teather & Greenwood and Bridgewell
*  Independent UK institutional and corporate stockbroker
*  Research-driven capital markets operations focuses on the UK small
  and mid-cap segment
*  Estimated market share of 3.7% in FTSE250 equities traded in the
  UK market

Merrion Landsbanki - Ireland
*  Staff of 101 in Ireland
*  One of Ireland's leading stockbroking and corporate advisory firms
*  Focused on private and institutional stockbroking, corporate
  finance, wealth mangement and funds management
*  Research on all the main listed Irish companies

William Fall, CEO of Straumur:"Straumur has been able to take advantage of this unique opportunity
to become a substantially broader and more client-focused bank with a
truly pan-European investment banking and securities platform. This
is a significant step forward and is in line with our strategy to
emphasize client-driven revenues and reduce reliance on long term
lending and proprietary trading. These companies have strong local
presence and reputations, which will reinforce our value proposition
of local market knowledge and access."

At 10:00 GMT today, a press conference will be held at Straumur's
Reykjavík headquarters at Borgartún 25, 8th floor.

For further information contact:
Ólafur Teitur Gudnason, Vice President, Media Relations
Corporate Communications
Tel: +354 858 6778
E-mail: olafur.gudnason@straumur.net

About Straumur:
Straumur-Burdaras Investment Bank hf. offers a complete range of
integrated financial services focusing on small and medium sized
companies, institutional investors and individuals. The services
provided include capital markets, corporate finance, debt finance,
and asset management.
Headquartered in Reykjavík, Straumur is Iceland's largest pure-play
investment bank. The Bank had total assets of €6,201m as at the end
of Q2 2008. Through organic growth and strategic acquisitions, the
Bank has established operations in ten countries including the UK,
Denmark, Sweden, Finland and the Czech Republic and now employs 520
people. Website: www.straumur.com.