Straumur-Burdaras Investment Bank preliminary results for year ended 31 December 2008

4 February 2009

Key results for 2008
* Client-driven income, comprising net interest and net fees and
  commissions, was € 180.9m in 2008.
* There was a loss of € 103.0m from trading and investment
  activities.
* Operating income totalled € 85.8m.
* Operating expenses totalled € 125.8m.
* Impairment losses on loans and receivables were € 413.5m.
* Impairment on intangible assets was € 327.7m. This impairment has
  no impact on regulatory capital or cash flow.
* Loss after tax was € 699.3m in 2008. Loss before tax amounted to €
  780.6m.
* Loss per share was € 0.073.
* Total assets were € 3,425.6m at 31 December 2008, a 52.0% reduction
  from the beginning of the year.
* Strong CAD ratio of 16.9% at 31 December 2008. The Tier 1 capital
  ratio was 14.6%.

  Key results for the fourth quarter of 2008
* Client-driven income totalled € 35.9m.
* Net losses from trading and investment activities amounted to €
  4.3m.
* Operating income for Q4 2008 was €35.4m.
* Operating expenses were € 33.1m.
* Impairments on loans and receivables were € 291.2m and impairments
  on intangible assets were € 327.7m.
* Loss after tax was € 574.5m in the fourth quarter, including €
  618.9m of impairments.

  Disclosure of financial statements
  Straumur-Burdaras Investment Bank (Straumur) presents preliminary
  statements of its financial performance for 2008 and its financial
  position at 31 December 2008 according to the new rules of the
  Icelandic Stock Exchange.
  The preliminary financial statements for the year 2008 were
  discussed at Straumur's Board of Directors' meeting on 3 February
  2009. However, the statement has not been approved by the Company's
  Board of Directors or its auditors.
  The financial statements for the year 2008 will be presented to
  Straumur's Board of Directors and its auditors for their approval
  in the week commencing 9 March 2009 and published the same day.
  The preliminary financial statements are prepared in accordance
  with International Financial Reporting Standards (IFRS).

  William Fall, CEO of Straumur
  We continue to operate in exceptionally difficult times and
  markets. We have come through this year of increasing challenge as
  a result of our more diversified business model, our significant
  de-risking of the company and our strong capital position. These
  drivers of our current strategy will continue to serve us into the
  future.

  In pursuit of our strategic goal to develop a pan-regional
  investment bank with a relatively low asset base, we are focussed
  on growing our advisory, brokerage and research businesses and
  leveraging our regional platform through international distribution
  and common technology. The integration of Teathers in London is
  complete with the retention of over 70 clients, and with the
  addition of a broad mid-cap research profile, complementing our
  similar activities elsewhere. Wood and Stamford Partners have both
  had an exceptional year, given overall market conditions while eQ
  has maintained market share and continued to thrive in difficult
  circumstances.

  Straumur has been helped through this turmoil by its exceptionally
  strong capital position. While the strength of the balance sheet
  has been severely tested, particularly in the last quarter of the
  year, through both loan impairments as well as asset devaluations,
  we complete the year with a CAD ratio that is twice that of the
  regulatory minimum. Our strong risk culture and integrity have
  ensured that we have no transactions on the balance sheet that are
  potential reputational liabilities. With our clear direction,
  strong platform and clean balance sheet, we face the ongoing
  challenge in the market with enviable resources and a determination
  to see this through.

  Further information can be obtained from:

  Stephen Jack
  CFO
  stephen.jack@straumur.com
  +44 7885 997570

  Georg Andersen
  Head of Corporate Communications
  georg@straumur.com
  +354 585 6707