Straumur-Burðarás Fjárfestingabanki hf. - Company Announcement

Organisational changes at Straumur

Three divisions at  Straumur-Burdaras Investment Bank  hf. -  Capital
Markets, Proprietary Trading and Merchant Banking - have been brought
together to form a  new group, Securities.  The three divisions  will
continue to operate as separate units within Securities, reporting to
Benedikt Gíslason, Managing Director and Head of Securities.

Skúli Valberg Ólafsson, Managing Director, has been appointed Head of
Merchant Banking. The  division of Merchant  Banking was  established
earlier this year. It invests  in listed and unlisted securities  and
alternative investments, and oversees  relations to funds managed  by
the Bank's  affiliates and  subsidiaries,  such as  Straumur  Capital
Management  (SCM),  eQ  funds,  Wood   &  Co  funds,  Julia   Capital
Management, Bru, etc.   Skúli has been  employed with Straumur  since
2003 and has managed  a number of initiatives  related to the  Bank's
development and growth, most recently as Chief Administrative Officer
(CAO).

With this reorganisation  the position  of CAO will  no longer  exist
within the Bank. The Bank's Operations division, headed by  Jónmundur
Gudmundsson, will  now  report to  the  CFO, Stephen  Jack,  and  the
Corporate  Services  group  will  become  part  of  Human  Resources,
reporting to David Oddsson.

None of the  changes outlined above  entail personnel changes  within
Straumur's Management Committee.

For further information, please contact:
Ólafur Teitur Gudnason, Vice President, Media Relations
Corporate Communications
olafur.gudnason@straumur.net
tel: +354 858 6778