Kaupþing banki hf. - Company Announcement

- Market-making in Kaupthing shares

Landsbanki Islands hf. (Landsbanki) has started acting as a market-maker, for
its own account, for shares in Kaupthing Bank hf. (Kaupthing). 
 
The agreement entails that Landsbanki will submit daily bid/ask offers for
shares in Kaupthing through OMX Nordic Exchange Iceland before the market opens
each day on offers that will only be valid within that day. The purpose of the
agreement is to facilitate trading and improve liquidity in Kaupthing'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: 
 
Landsbanki will submit daily bid and offer quotes for shares in Kaupthing for a
minimum of 40.000 shares (each share being ISK 10,0 at nominal value ) at a
price determined by Landsbanki. 
 
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: 
Jónas Sigurgeirsson, Chief Communication Officer, tel 354-444-6112 or
ir@kaupthing.com 
 
About Kaupthing Bank
Kaupthing Bank offers comprehensive commercial and investment banking services
to individuals, companies and institutional investors. The Bank is a leading
player in all the main areas of the Icelandic financial market, and in addition
to Iceland, the Bank's key markets are Denmark and the United Kingdom. The Bank
focuses on the growth and development of its international activities and aims
to be one of the leading investment banks in northern Europe. 
 
Kaupthing Bank operates in thirteen countries with its headquarters located in
Reykjavík. The Bank's main subsidiaries are FIH Erhvervsbank in Denmark,
Kaupthing Singer & Friedlander in the United Kingdom, Kaupthing Bank Sverige,
Kaupthing Bank Luxembourg, Kaupthing Bank in Finland, Norvestia Oyj in Finland,
Kaupthing New York, Kaupthing Switzerland, Kaupthing Bank Belgium and Kaupthing
Bank Norge in Norway. The Bank also has activities in Isle of Man, the United
Arab Emirates (Dubai) and Qatar. As of 30 September 2007 the number of
full-time equivalent positions was 3,190 at Kaupthing Bank and its
subsidiaries. www.kaupthing.com