Announcement 7/2010 Moody's has placed Føroya Banki's rating A3/P-2/C- on review for possible downgrade. Moody's decision follows the banks announcement to acquire 12 branches in Denmark and Greenland, which Moody's deems to be of substantial size compared with the banks current size. Therefore Moody's will review the execution risk, and also the impact on the bank's credit quality and cost management. Føroya Banki is still comfortably rated by Moody's, and a possible downgrade is not expected to influence the Group's funding situation. Føroya Banki's creditors' unsecured claims against the bank are covered by the Danish Sector Fund until 30 September 2010 as most of the Danish Banking Sector. Føroya Banki has also concluded an agreement with Finansiel Stabilitet A/S regarding the conditions for the individual government-backed guarantee for unsubordinated debt permitted under the Danish Act on Financial Stability. The agreement gives Føroya Banki an option over the next year to request a three-year government-backed guarantee for unsubordinated debt up to a maximum of DKK 4.0 billion. The Group's current external funding amounts to DKK 2 billion corresponding to half of the granted government backed guarantee programme. Føroya Banki Janus Petersen, CEO +298 330340 Johnny í Grótinum, IR +298 230380