30.10.2008 : The Depositors' and Investors' Guarantee Fund's obligation to pay compensations to depositors of Kaupthing Bank hf.

On 9. October 2008, Kaupthing Edge webpage of Kaupþing banki hf. ("Kaupthing Bank") ceased to work. It is the opinion of the Financial Supervisory Authority, Iceland (the FME) that on the same day, Kaupthing Bank was unable to render payment of the amount customers demanded, of certain deposits, in accordance with applicable terms.

27.10.2008 : Landsbanki Íslands' hf. ability to render payment of deposits

On 6 October 2008, Landsbanki Íslands' hf. ("Landsbanki") Icesave websites ceased to work. It is the opinion of the Financial Supervisory Authority (the FME) that on the same day, Landsbanki was unable to render payment of the amount customers demanded, of certain deposits, in accordance with applicable terms.

23.10.2008 : Decisions due to Unusual Financial Market Circumstances

All decisions regarding the actions of the Financial Supervisory Authority, Iceland (FME) that have been taken with reference to Act No. 125/2008, due to Unusual Financial Market Circumstances can now be found in chronological order on the FME´s website, as shown below.

22.10.2008 : New Kaupthing Bank Takes Over Domestic Operations of Kaupthing banki hf.

The new bank takes over Kaupthing´s domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland. Kaupthing´s international operations are separated. All Kaupthing´s domestic braches, call centres, ATM´s and internet banking will be open for business as usual.

15.10.2008 : New Glitnir Bank Takes Over Domestic Operations of Glitnir banki hf.

The new bank takes over Glitnir´s domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland. Glitnir´s international operations are separated. All Glitnir´s domestic braches, call centres, ATM´s and internet banking will be open for business as usual.

9.10.2008 : Based on New Legislation, the Icelandic Financial Supervisory Authority (FME) Proceeds to take Control of Kaupþing to ensure Continued Commercial Bank Operations in Iceland

Domestic deposits are fully guaranteed, as declared by the Government Kaupthing´s domestic branches, call centres, cash machines (ATMs) and internet operations will be open for business as usual The objective of the FME´s action is to guarantee a functioning domestic banking system

9.10.2008 : New Landsbanki Takes Over Domestic Operations of Landsbanki Islands hf.

The new bank takes over Landsbanki´s domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland. Landsbanki´s international operations are separated. All Landsbanki´s domestic braches, call centres, ATM´s and internet banking will be open for business as usual.

8.10.2008 : Based on New Legislation, the Icelandic Financial Supervisory Authority (FME) Proceeds to take Control of Glitnir to ensure Continued Commercial Bank Operations in Iceland

Domestic deposits are fully guaranteed, as declared by the Government Glitnir´s domestic branches, call centres, cash machines (ATMs) and internet operations will be open for business as usual The objective of the FME´s action is to guarantee a functioning domestic banking system

7.10.2008 : Based on New Legislation, the Icelandic Financial Supervisory Authority (FME) Proceeds to take Control of Landsbanki to ensure Continued Commercial Bank Operations in Iceland

Domestic deposits are fully guaranteed, as declared by the Government. Landsbanki´s domestic branches, call centres, cash machines (ATMs) and internet operations will be open for business as usual. The objective of the FME´s action is to guarantee a functioning domestic banking system.

7.10.2008 : The Financial Supervisory Authority limits short selling activities

Due to extraordinary market circumstances, and to restore and maintain financial stability, the Financial Supervisory Authority has concluded to define the short selling of shares of certain Issuers as behaviour opposed to accepted market practices. As such, a person who behaves in such a manner may be found guilty of market abuse in accordance with Article 117 of the Act on Securities Transactions No. 108/2007.

6.10.2008 : Temporary suspension from trading

The Financial Supervisory Authority has decided to temporarily suspend from trading on regulated market all financial instruments issued by Glitnir banki hf., Kaupþing banki hf., Landsbanki Íslands hf., Straumur-Burðarás fjárfestingarbanki hf., Spron hf. and Exista hf.

3.10.2008 : Guidelines on the Functions of Auditing Departments of Financial Undertakings

The Financial Supervisory Authority (FME) has issued Guidelines no. 3/2008 on the functions of auditing departments of financial undertakings. The Guidelines’ objective is to instruct the heads of auditing departments in financial undertakings how to best practice internal auditing. Internal audit is a part of the structure of financial undertakings and is an important element of their supervisory function.