- New Board of Byr Savings Bank

ICELAND - A new Board of Directors was elected on Byr's annual meeting, held on
May 13th at the Hilton Nordica in Reykjavík. Two lists of candidates were
running for election, list A and list B. The B-list, lead by Jón Kr. Sólnes,
received 48,3 % of the votes, while the A-list, lead by Sveinn Margeirsson,
received 46,13 %. The Board of Byr for the upcoming operating year will
therefore consist of Jón Kr. Sólnes (B), Sveinn Margeirsson (A), Guðmundur Geir
Gunnarsson (B), Arnar Bjarnason (A), and Matthías Björnsson (B). Reserve board
members are Þorsteinn Ólafur Þorsteinsson (B) and Stefán Franklín (A). 

The collapse of the Icelandic financial system was discussed in depth during
the meeting, as well as Byr's performance over the past year. Ragnar Z.
Guðjónsson, CEO of BYR, stated in his speech that Byr's operating budget for
2009 assumed a profit and that in spite of last years difficulties, Byr should
have a good chance of reaching its former strength in the next few years. He
also stated that: 

"The existence of independent financial institutions, which can support
Icelandic homes and businesses, is a precondition for the renaissance of the
Icelandic economy. A precondition for Byr being able to offer competitive
service and to look after the interest of its customers, is that all
governmental actions to rebuild the economy are founded on equivalent terms.
Active competition between financial companies with a dispersed ownership is
necessary for the nation's economy to grow strong and healthy." 

663 votes were cast, with 5,14 % empty ballots. Representatives for 78 % of the
active votes attended the meeting, with founding members numbering 1.512. The
meeting passed that no returns should be paid from the initial capital this
year and that the authorisation to reassess the initial capital, according to
article 67 of the Act on financial companies, should not be used. 

Further information:
Ragnar Z. Guðjónsson CEO, tel. (+354) 575 4000.