Landsbanki Íslands hf. - Company Announcement

Market-making in Landsbanki Shares

Kaupthing will, for its own account, act as market maker for Landsbanki's
shares on the OMX Nordic Exchange, as announced in a market-making agreement.
Kaupthing will submit daily bid/ask offers valid within the day for Landsbanki
shares before the market opens. 

The purpose of the agreement is to facilitate trading and improve liquidity in
Landsbanki's shares on the OMX Nordic Exchange Iceland and to promote efficient
and transparent price formation. 

The terms of the market making agreement are as follows:

-	Kaupthing will submit daily bid and offer quotes for shares in Landsbanki for
a minimum of 1,000,000 shares at a price determined by Kaupthing 
-	Maximum bid/ask spread shall not exceed 1.0% and the deviation from the last
transaction price shall not exceed 3.0% 
-	The maximum obligated total trades per day is ISK 400,000,000 market value
-	The agreement was effective as of 21 January 2008

For further information:
Landsbanki - Tinna Molphy, Head of Investor Relations, ir@landsbanki.is and
tel: +354 410 7200 / mob: +354 861 1440. 
Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 /
mob: +44 7711 264 157. 


About Landsbanki
Landsbanki is a growing European bank with total assets of ISK 2,847 billion
(EUR 32.4 bn) at 30 September 2007 and a market capitalisation of ISK 331
billion (EUR 3.4 bn) as of 23 January 2008. Through its extensive distribution
network of 2,499 employees in 17 countries, Landsbanki is set to deliver
targeted financial services based on local expertise for mid-cap corporates in
Europe. Landsbanki provides retail and corporate banking, investment banking,
capital markets services, asset management and wealth management for private
banking clients. Landsbanki's unique product line includes access to both debt
and equity markets and its research department is among the most comprehensive
in Europe, including some 100 analysts covering close to 950 European stocks. 

The market leader in the Icelandic financial service sector, Landsbanki's
growth in recent years has been primarily organic, based upon smaller,
strategically acquired platforms in the UK, Ireland and Continental Europe.
Most recently, the bank acquired the securities broker and investment bank
Bridgewell in the UK. 

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the
OMX Nordic Exchange Iceland under the ticker LAIS. Landsbanki is rated by
Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).