Glitnir banki hf. - Company Announcement

Glitnir rationalises its European operations

Current operations in Denmark consolidated in London

Reykjavik/Copenhagen -  Thursday  27  February  2008  -  Glitnir  has
decided to close down  its branch in Copenhagen.  The Bank will  move
most of its current operations from  Copenhagen to London and to  its
headquarters  in  Iceland.  This  move   is  an  important  step   in
consolidating and  aligning  Glitnir's  European  business  and  thus
creating cost synergies and increasing  efficiency at the same  time.
Glitnir's office  in  London  will  be  responsible  for  the  bank's
business in the UK and continental Europe.

The Danish operation employs 17 people and has to a large extent been
related to the bank's  cross border activities,  which in the  future
will be operated from other locations and service Danish clients.  In
the current market environment the Bank is focusing its international
activities on the  core strategy  of building its  corporate bank  in
Norway and  providing  selected  financial  services  in  the  Nordic
region. The bank is furthermore  increasing the emphasis on its  core
clients internationally, particularly within  the bank's niche  areas
of seafood and geothermal energy, where it holds a leading position.

Glitnir has  clearly  stated  that the  Bank  aims  at  consolidating
its operation in 2008 around its core business.

The Total  Capital team  dealing with  Nordic and  Danish  integrated
finance buyout transactions will continue its activities locally in a
separate unit.

Glitnir recently reported profits of  ISK 33.9 bn. (EUR 387m)  before
taxes and  a return  on  equity 19.3%  for 2008.  The  Bank is  in  a
comfortable liquidity position with EUR 7 billion immediate available
funds with maturing long term debts of EUR 2.5 billion for the  group
due for the  remainder of  the 2008. The  Bank has  a robust  capital
ratio of 11.2%.

For more information:
Bjørn Richard Johansen, Managing Director, Global Corporate
Communication,
mobile: +47-22 82 56 93, Mobile: +47-47 800 100, e-mail:
brj@glitnir.no

About Glitnir Bank
Glitnir is a Nordic bank, headquartered in Iceland, with operations
in 11 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 our home markets we have operations in
Finland, Sweden, UK, Luxembourg, US, Canada, China, Denmark and
Russia. We drive our international expansion based on two specialised
industry sectors: seafood and sustainable energy, where we have
developed significant industry expertise built on our Icelandic and
Norwegian heritage. Our shares are listed on OMX in Iceland under the
ticker, GLB.