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Investing in the "New Frontier"; Nordic financial group Glitnir puts its stakes in U.S. geothermal energy market

The leading Nordic financial specialty group, Glitnir Bank, joined leading geologists, government officials, investors and other thought leaders in geothermal energy in San Francisco, California, U.S. today at the first annual West Coast Geothermal Energy Development and Finance Workshop, sponsored by Glitnir Bank and Ormat Technologies. The Nordic bank has taken a keen interest in United States projects and is poised to finance geothermal energy development throughout the western U.S.

Magnús Bjarnason, Executive Vice President of Glitnir, spoke about the great potential of investments in the United States and what Glitnir brings to the table. "The U.S. market is extremely attractive to us. The amount of megawatts slated for delivery from geothermal energy is trending upward; 50 percent higher than just six months ago. To U.S. officials and project consortiums seeking investment, Glitnir has the right combination: a proven track record and size - over $31 billion dollars in assets. Our experience and capital mean that we are poised to be the investor and trusted advisor of choice in the 'new frontier' of geothermal energy in the United States."

Glitnir, a major commercial bank based in Iceland and Norway with operations in Europe, Asia and America, has committed itself to developing geothermal energy resources and is proud to support this one-day workshop that brings together geothermal companies, developers, financiers and consultants from the U.S. and around the world. Geothermal energy is one of three niche segments in which the bank operates globally. The other two niche segments are offshore service/shipping and seafood/food, where Glitnir has specialist teams working on projects all over the globe.

Geothermal energy (see facts below), which uses the earth's heat to generate energy, produces almost no greenhouse gases and is one of the most sustainable energy sources available.

In Iceland, geothermal energy supplies about 18 percent of the country's electricity, 90 percent of heating and 90 percent the country's hot water supply, and geothermal power plants are turning substantial profit. Glitnir is utilizing Iceland's experience and expertise to efficiently develop geothermal energy production in other countries, including the United States. The U.S. market for geothermal energy is currently valued between $1.3 billion and $1.7 billion a year.

"We are in talks with a California energy company to build a major geothermal power plant in the state with 50 MW capacity. New plants can produce energy at costs comparable to conventional fossil-fuel burning plants, and in the long run are much more economical." said Bjarnason. Glitnir plans to expand its role in developing America's geothermal energy sector by underwriting research and development as well as power-plant construction and geothermal exploration.

Already, geothermal energy is paying dividends for the American economy; for every dollar invested on geothermal energy, the resulting growth of output to the U.S. economy is $2.50. States with significant geothermal resources include: California, Nevada, Utah, Arizona, New Mexico, Hawaii, Alaska, Oregon, Washington and Idaho.

The workshop included representatives from the Union of Concerned Scientists, U.S. House of Representatives Speaker Nancy Pelosi's office and the U.S. Department of the Interior, among others.

Karl Gawell, conference organizer and Executive Director of the Geothermal Energy Association in the U.S., praised the company's commitment saying: "The fact that sizable financial institutions like Glitnir are here today adds tremendously to growth opportunities for geothermal energy in the United States. Glitnir knows green energy and green commerce, experience that will greatly benefit U.S. geothermal project development."

To access this announcement and more information from today's workshop, visit www.glitnirbank.com/energy

Details from GEA survey results also announced at today's workshop may be downloaded from the Geothermal Energy Association website: http://www.geo-energy.org/

What is Geothermal Energy?

Geothermal energy is defined as heat from the Earth. It is a clean, renewable resource that provides energy in the United States and around the world. It is considered a renewable resource because the heat emanating from the interior of the Earth is essentially limitless. Geothermal energy is contained in underground reservoirs of steam, hot water, and hot dry rocks. The heat continuously flowing from the Earth's interior is estimated to be equivalent to 42 million megawatts of power. The interior of the Earth is expected to remain extremely hot for billions of year to come, ensuring an inexhaustible flow of heat. Sources: Geothermal Energy Association and the U.S. Dept. of Energy

About Glitnir

The financial group Glitnir offers universal banking and is a leading niche player in three global segments; seafood/food, sustainable energy, and offshore services vessels. Glitnir considers Iceland and Norway its home markets. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of a bank in Luxembourg (Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway (BNbank, Glitnir Bank ASA, Glitnir Securities, Glitnir Factoring and Glitnir Property Holding (with partners). Glitnir's subsidiary BNbank owns 45 percent of the shares in Norsk Privatøkonomi ASA, an independent financial advisory company with 14 branches in key areas of Norway). In Sweden, Glitnir owns the leading Swedish brokerage firm Glitnir AB. Glitnir Property Group recently acquired 91 percent of the shares in Leimdörfer AB, the leading commercial real estate advisor in Sweden. The group also recently acquired 68.1 percent of the shares in the leading Finnish asset management company FIM, with operations around Finland and in Stockholm and Moscow. (Glitnir has made a tender offer for all shares in FIM). Glitnir operates branches in London and Copenhagen. The group has representative offices in Halifax, Canada and Shanghai, China, and plans to open an office in New York in 2007. Glitnir is listed on the Icelandic Stock Exchange. For more information:

Glitnir and Sustainable Energy

Glitnir has been serving the energy industry in Iceland for decades. The industry focus is based almost entirely upon sustainable resources - hydro and geothermal. Today Glitnir meets the financial needs of companies in the geothermal energy, both for electricity production and direct use. We believe in the need for responsible energy production and believe that the renewable energy sector will play a tremendously important role dealing with the global climate changes that we are already experiencing.

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