Landsbanki Íslands hf. - Company Announcement

Moody's affirms Landsbanki's credit rating at A2 / P-1 / C- / Stable

Moody's Investor Service has affirmed the long-term foreign and local
currency deposit ratings of Landsbanki Islands hf ("Landsbanki") as
A2 and its bank financial strength rating ("BFSR") at C-. The bank's
Prime-1 short-term rating was also affirmed, the highest rating
given. The outlook on all ratings is stable.

The affirmation comes on the back of Moody's downgrade of the
Icelandic Sovereign to Aa1 from Aaa.

For further information on the rating action, please refer to the
attached press release from Moody's.

For further information please contact:
Landsbanki's CEOs Sigurjón Th. Árnason, tel. +354 410-4009 / +354 898
0177 and Halldór J. Kristjánsson, tel. +354 410 4015 / +354 820 6399
or Brynjólfur Helgason, Alternate CEO and MD International Banking.
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269
7204 / mob: +44 7711 264 157.


About Landsbanki
Landsbanki is a growing European bank with total assets of ISK 3,836
billion (EUR 32.1 bn) at 31 March 2008 and a market capitalisation of
ISK 289 billion (EUR 2.5 bn) as of 21 May 2008. Through its extensive
distribution network of 2,640employees in 17 countries, Landsbanki is
set to deliver targeted financial services based on local expertise
for mid-cap corporates in Europe. Landsbanki provides retail and
corporate banking, investment banking, capital markets services,
asset management and wealth management for private banking clients.
Landsbanki's unique product line includes access to both debt and
equity markets and its research department is among the most
comprehensive in Europe, including some 100 analysts covering close
to 950 European stocks.

The market leader in the Icelandic financial service sector,
Landsbanki's growth in recent years has been primarily organic, based
upon smaller, strategically acquired platforms in the UK, Ireland and
Continental Europe. Most recently, the bank acquired the securities
broker and investment bank Bridgewell in the UK.

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded
on the OMX Nordic Exchange Iceland under the ticker LAIS. Landsbanki
is rated by Moody's (A2 / P-1 / C- / Stable) and Fitch (A / F1 / B/C
/ Negative).

Attachments:

Moodys affirms Landsbanki credit rating - 21 May 2008