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Glitnir Strengthens Its Robust Liquidity Position With $ 1 Billion Bond in the US Market

Glitnir Bank yesterday issued a US$ 1 billion bond in the US market. The bond, which pays a fixed rate of 6.375% for 5 years, was issued off the Bank's US 144a MTN Programme. The order book was well oversubscribed, with tickets amounting to $1.7 billion. The issue was designed to re-inforce the Bank's strong liquidity at a time of continuing uncertainty in the international capital markets. Bookrunners were Citigroup, Credit Suisse and Wachovia.

"The bank is in a very good position and we are pleased with the transaction's performance and the investors' strong support for Glitnir", said Alexander Gudmundsson, Glitnir's Chief Financial Officer.

"Glitnir has prudent internal liquidity targets and this transaction strengthens the bank's robust liquidity position. Particularly since the events of Spring 2006, we have placed great emphasis on maintaining a strong liquidity position - namely, coverage for 12 months' maturing liabilities in cash, committed facilities and liquid assets", comments Gudmundsson.

"We are clearly mindful of the fact that the market as a whole has re-priced substantially, but in relative terms our pricing has been less affected than some of the larger financial sector borrowers. Glitnir has neither subprime nor CDO exposures and was one of the first banks to make such disclosures. The market has taken comfort from this lack of exposure along with our transparent communication strategy. These facts, combined with our conservative risk management practices, the match-funding of our book being not the least of them, continues to inspire confidence in the strong Glitnir story", concludes Gudmundsson.

About Glitnir

The financial group Glitnir offers universal banking and financial services with the Nordic region as home base. Glitnir is a leading niche player in three global industry segments; seafood/food, sustainable energy, and offshore services vessels. The group's services include retail, corporate and investment banking, stock trade/brokerage and capital management. Glitnir considers Iceland and Norway its home markets. The Glitnir group has operations in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, USA, Canada and China. Glitnir is listed on the Icelandic Stock Exchange. For more information: www.glitnirbank.com

http://www.glitnir.com