Arion Bank hf. - Company Announcement

Arion Bank and Kaupthing assessing a range of strategic alternatives

In the context of the continued strong development of the Icelandic economy,
Arion Bank and Kaupthing, its majority owner, are currently assessing a range
of strategic alternatives with regards to Kaupthing's shares held in the bank.
This may include a possible IPO; however, no decision has been made at this
point in time with respect to any specific transaction and timing thereof. 

For further information please contact Haraldur Gudni Eidsson, Head of Arion
Bank's Communications division, at haraldur.eidsson@arionbanki.is or tel. +354
444 7108.