SPRON Verðbréf hf. - Company Announcement

Merger discussion between Kaupþing and SPRON continue

Kaupthing and SPRON have been negotiating a possible merger between the
companies in the past four weeks.  Negotiations have not been completed within
the timeframe expected but are still ongoing.  The conclusion to the
negotiations will be reported on as soon as possible.

A merger is subject to the approval of SPRON shareholders, Kaupthing´s Board of
Directors, the Icelandic Financial Supervisory Authority, the Competition
Authority and the companies' creditors. 
For further information please contact Guðmundur Hauksson, CEO of SPRON, tel:
+354 550 1213.