Landsbanki's Operations Continued Under Unchanged Management

    Landsbanki's Operations Continued Under Unchanged Management
             



Landsbanki Íslands hereby announces that the Icelandic Financial
Services Authority, the Fjármálaeftirlitið (FME) has decided to take
over the powers invested in Landsbanki's shareholders meeting and
Landsbanki's Board of Directors. The FME has appointed a receivership
committee which has assumed the role of the Board of Directors with
immediate effect.

Members of the receivership committee are Ársæll Hafsteinsson, Einar
Jónsson, Lárentsínus Kristjánsson, Lárus Finnbogason and Sigurjón
Geirsson.

The receivership committee have stated the following:

  * The objective of the committee is to ensure the continued
    operations of the commercial banking operations of Landsbanki
    Íslands hf. in Iceland.
  * A public notice to debtors will not be issued.
  * Provisions of Icelandic insolvency laws do not apply to the
    operations of Landsbanki while the receivership committee is
    responsible for the matters of the bank. Ceasure of assets can
    not be made against Landsbanki during the same period.


By law, the action of appointing a receivership committee, can not
have the effect of creating a default under any loan documents.

The receivership committee have asked Halldór J. Kristjánsson and
Sigurjón Þ. Árnason to continue their work as CEOs of Landsbanki
Íslands hf. and be responsible for daily operations.

Landsbanki would like to stress that the bank has not been put into
liquidation but is in receivership which gives it a temporary
protection from payment of debts and obligations as they fall due.
Work has already begun on the restructuring of the operations of
Landsbanki. The receivership committee and Landsbanki's CEOs share
the view that operations over the next days will be performed in a
manner as close to business as usual with a view to protecting
Landsbanki's assets in Iceland and abroad.

For further information:
Landsbanki CEOs - Halldór J Kristjánsson and Sigurjón Þ Árnason, tel:
[phone].
Media Relations - Andrew Walton, Financial Dynamics, tel: [phone]
7204 / mob: [phone].