Kaupþing banki hf. - Company Announcement

Moody's affirms the ratings of Kaupthing Bank

Moody's Investors Service has affirmed the long-term foreign and
local currency deposit ratings of Kaupthing Bank hf as A1 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 following Moody's downgrade of the Icelandic
Sovereign to Aa1 from Aaa.

Further information:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126
Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112

Attachments:

Moodys Rating Action 20 May 2008