R&I assigns A+ Credit Rating

Today, Rating and Investment Information (R&I), a Japan based rating
agency has assigned A+ credit rating to Kaupthing Bank. The rating
outlook is stable.

In its announcement, R&I states that the rating reflects Kaupthing
Bank's strong position in the Icelandic market as well as the
diversification of its earnings and credit risks through the
expansions into the U.K. and Scandinavian countries. In addition its
good profitability and sound asset quality are taken into account.
However, small size and volatility of the Icelandic economy and
financial market, the risks in the banking business in U.K., and the
latent risks associated with the rapid business expansion are also
taken into consideration.

R&I also states that although the bank has a small deposit base and
high reliance on wholesale funding, it has during the past year
substantially reduced its refinancing risk by diversifying funding
sources, lengthening funding tenures and implementing conservative
liquidity controls.

R&I is the third rating agency to rate Kaupthing Bank, after Moody's
Investor Service and Fitch Ratings which assigned Kaupthing Bank the
long-term rating Aa3 and A respectively."The diversification of funding sources continues to be a key
strategic priority for Kaupthing Bank and the Asian market will be a
fundamental part of this strategy. We believe that having a strong
rating from R&I, which is widely acknowledged in the Asian financial
markets, will certainly enhance our ability to serve our current
investor base and attract new investors" says Gudni Adalsteinsson,
Chief Treasurer of Kaupthing Bank.

R&I news release is attached.

For further information please contact:
Gudni Adalsteinsson - Chief Treasurer, + 354 444-6126
Jónas Sigurgeirsson - Chief Communications Officer, +354 444-6112

About Rating and Investment Information (R&I)
R&I was established in 1998 by a merger of Nippon Investors Service
(NIS) and Japan Bond Research Institute (JBRI). JBRI started its
rating activity as the first rating agency in Japan in 1977, R&I has
been providing more ratings than any other credit rating agency in
Japan. As of April 30, 2007, R&I had 681 issuer ratings with respect
to Japanese issuers. In addition to its prominence in the capital
markets for its ratings of Japanese issuers, R&I rates securities and
issuers on a global basis. For additional information about R&I and
R&I's credit ratings, please visit http://www.r-i.co.jp/

About Kaupthing Bank
Kaupthing Bank is a northern European bank offering integrated
financial services to companies, institutional investors and
individuals. These services include corporate banking, investment
banking, capital markets services, asset management and comprehensive
wealth management for private banking clients. The Bank operates in
ten countries, including all the Nordic countries, Luxembourg,
Switzerland, the UK and the US. In addition the Bank operates a
retail franchise in Iceland, where it is headquartered.

Kaupthing Bank is currently among the seven largest banks in the
Nordic region in terms of market capitalization. Through sound
organic growth and strategic acquisitions like the UK bank Singer &
Friedlander in 2005 and FIH Erhvervsbank in Denmark in 2004,
Kaupthing Bank has fortified its position to provide outstanding
services to its client base in the UK, the Nordic countries and
elsewhere in northern Europe. The Bank has 2,719 employees and total
assets of EUR 42.9 billion (as of 31 December 2006).
www.kaupthing.com