Landsbankinn hf. - Company Announcement

Landsbankinn hf.: Steinþór Pálsson steps down as CEO of Landsbankinn

The Board of Directors of Landsbankinn and Steinþór Pálsson, CEO, have agreed
that Steinþór cease his employment with the Bank. Steinþór has been CEO of
Landsbankinn since 1 June 2010. Hreiðar Bjarnason, CFO and Deputy CEO, now acts
as interim CEO of the Bank. The position will be advertised as soon as possible.

"I have been at Landsbankinn for six and a half eventful years. A great deal of
positive headway has been made towards restoring household and corporate
finances during these years. Landsbankinn has undergone major transformation
during this time and I leave satisfied with the work I have done. The Bank's
financial position is very sound and its market share has grown. I bid a fond
farewell to my colleagues and wish them every success for the future," says
Steinþór Pálsson.

Helga Björk Eiríksdóttir, Chairman of the Board of Directors:
"The Board thanks Steinþór for his great and successful efforts on behalf of
Landsbankinn. Many pressing and demanding tasks have been successfully resolved
under his leadership and the Bank's operations solidified. Landsbankinn now
faces new challenges. The Board considers it right to face those challenges
under new leadership.  We wish Steinþór every success in the future."


[]