Kaupþing banki hf. - Tender offer

- Kaupthing acquires offshore deposit-taking business in the Isle of Man

Kaupthing Bank hf. ("Kaupthing") has agreed with Derbyshire Building Society
("Derbyshire") to acquire the entire issued share capital of Derbyshire's
offshore deposit-taking business The Derbyshire (Isle of Man) Limited
("Derbyshire Offshore"). 

Derbyshire Offshore is a specialised operation that offers a targeted range of
fixed and variable rate sterling deposit accounts for its retail and business
customers. At the end of the third quarter 2007, it had total deposits of over
£320 million (EUR 460 million). The transaction will have an insignificant
effect on the overall operations of the Kaupthing Group. Following completion
of the transaction, which is expected to take place before the end of the year,
Derbyshire Offshore will be integrated into Kaupthing's existing Isle of Man
operation. Kaupthing's strategy for the business is to grow deposits and cross
sell additional products. 

Gudni Adalsteinsson, Chief Treasurer: "This acquisition is in line with
Kaupthing's strategy to increase the level of deposits within the bank.
Derbyshire's Offshore business is very efficiently run and will be a great
addition to our current operations in the Isle of Man." 


For further information:
Gudni Adalsteinsson, Chief Treasurer, + 354 444 6126
Jonas Sigurgeirsson, Chief Communications Officer, + 354 444 6112