Glitnir banki hf. - Company Announcement

Glitnir Bank launches a successful covered bond issue in Norway

Glitnir Bank ASA issues covered bonds for NOK 7 billion
(approximately EUR 900m) in the Norwegian Market
Oslo - May 14, 2007 - Glitnir Bank ASA in Norway has today
successfully closed a covered bond issue of NOK 7 billion
(approximately EUR 900 million). The issue, achieved through its
Norwegian subsidiary BN Boligkreditt AS, secures all refinancing of
Glitnir Bank ASA's debt maturing in 2008, as well as some of the 2009
and later maturities. The issue was sold exclusively to Norwegian
investors.

The covered bond issue was successfully achieved by issuing bonds
with maturities between 1 and 7 years at the price of NIBOR +25-+55
bp."I am very pleased that Glitnir Bank ASA has secured all of its
required refinancing in 2008 by this successful covered bond
transaction", said Glitnir's Executive Vice President Nordic Banking,
Morten Bjørnsen. "I am also delighted that we succeeded in placing
the transaction at attractive margins, and how well it was received
by the Norwegian investor base.""Appetite for the issue has demonstrated investors' views of the
Bank's underlying strengths and the trust that local investors have
in our Norwegian operation. Covered bonds are an efficient form of
financing in the current market environment. Through our excellent
asset quality in Norway we have the opportunity to continue to fund
our operations using the covered bond market", added Lárus Welding,
CEO of Glitnir.

Glitnir Bank recently presented strong results for the first quarter
of 2008. In a challenging market the Bank reported core income growth
of 8.6% and costs reducing by 12% quarter on quarter. Glitnir
demonstrated its inherent strengths with the generation of ISK 7.7bn
pre-tax profits for the first quarter, confirming the Bank's
underlying resilience and flexibility. The Bank is in a good position
with EUR 8.7 billion of immediately available funds with remaining
maturing long term debt of EUR 1.58 billion in 2008 its parent
company. Glitnir Bank ASA in Norway also reported strong results in
its first quarter of 2008. The pre-tax profit for the first quarter
was NOK 104 million, up from NOK 90 million in the previous quarter.
ROE was up to 12.3% from 10.9% in the previous quarter.

The issue was arranged by Arctic Securities and Pareto Securities in
Oslo.

For further information:
Ingvar Ragnarsson, Managing Director, Treasury, tel. +354 440 4665,
mobile +354 844 4665 and e-mail: ingvar.ragnarsson@glitnir.is

Vala Pálsdóttir, Head of Investor Relations, tel. +354 440 4989,
mobile +354 844 4989 ande-mail: vala.palsdottir@glitnir.is

Bjørn Richard Johansen, Managing Director, Global Corporate
Communication,
mobile +47-47 800 100, e-mail: brj@glitnir.no

About Glitnir Bank:
Glitnir is a Nordic bank, with headquarters in Iceland and operations
in ten countries. Our home markets are Iceland and Norway, where we
offer a broad range of financial services, including corporate
banking, investment banking, capital markets, investment management
and retail banking. Outside of our home markets we have operations in
Finland, Sweden, UK, Luxembourg, US, Canada, China and Russia. We
will furthermore open an office in India in the second half of 2008.
Our international expansion is mainly driven by two specialised
industry sectors - seafood and sustainable energy - in which we have
developed significant industry expertise built on our Icelandic and
Norwegian heritage. Our shares are listed on NasdaqOMX in Iceland
under the symbol GLB. For more information: www.glitnirbank.com