The offering of structured covered bonds is now closed

| Source: Kaupþing banki hf. Kaupþing banki hf. 


Kaupthing Bank hf. hereby announces the results of the offering of
structured covered bonds which ended today. Offers for a total
nominal value of ISK 1,5 billion were received.

Accepted offers for structured covered bonds were, KAU CB2 (maturing
in 2048) for a nominal value of ISK 1.0 billion, with a weighted
average yield of 5,0%.

The settlement date is 1 October 2008.

For further information please contact:
Jónas Sigurgeirsson, Chief Communications Officer, tel. + 354 444
6112 or ir@kaupthing.com