Kaupþing banki hf. - Company Announcement

Kaupthing Bank: No indication of government intervention

Following the extraordinary legal measures taken by the government
last night, allowing the Icelandic Financial Supervisory Authority
(FME ) to invervene in the operations of Icelandic financial
institutions, Kaupthing would like to clarify the following:

Kaupthing has not been approached by the Icelandic FSA regarding any
intervention in Kaupthing's operations. Furthermore, the Central Bank
of Iceland has provided Kaupthing with a 500 million euro loan to
facilitate operations, and Kaupthing is committed to working with the
government to ensure regular workings of the Icelandic financial
system.

For further information, please contact Jonas Sigurgeirsson, Chief
Communication Officer, +354 444 6112.