Straumur-Burðarás Fjárfestingabanki hf. - Company Announcement

Information on Straumur-Burdaras Investment Bank hf. (Straumur) financing

5 December

Straumur-Burdaras Investment Bank hf. confirms that it has today
closed bank financing of €133 million. This financing improves the
Bank's liquidity horizon and enables it to meet the repayment of its
€200million 2005 syndication which matures on 9 December. This new
funding matures on 15 May 2009. Straumur is confident that it is now
in a position to continue to meet all its future financial
obligations as they fall due.

William Fall said "This new financing is an important achievement for
Straumur, especially given the current market conditions.
Furthermore, it is a positive sign for Iceland in view of challenges
faced by the country in recent times. The Bank will, in line with its
stated strategy, continue to build its customer-focused merchant
banking business whilst making further reductions in its balance
sheet and preserving its strong capital position."

For further information contact;

Georg Andersen
Head of Corporate Communications
Mobile: +354 858 6707
georg@straumur.com

Ed Gasgoigne-Pees
Managing Director, Financial Dynamics
Tel: +44 (0)20 7269 7132
ed.gascoigne-pees@fd.com