Highlights of the Interim Financial Statements of Landsbanki Íslands hf. for the first six months of 2008

LONDON–(EMWNews – July 29, 2008) –

— Pre-tax profit for the first six months of 2008 amounted to ISK 31.1

billion (EUR 285m) The bank’s after-tax profit was ISK 29.5bn (EUR 270m).

— After-tax ROE was 35%. At the end of June 2008, the Bank’s capital ratio

(CAD rules) was 10.3%.

— The group’s core income (net interest income plus fees and commissions)

was ISK 58bn (EUR 531m), an increase of close to 32% over 6M 2007.

— Core income from operations outside of Iceland amounted to ISK 33.9bn

(EUR 310m) during the first half of 2008, equivalent to 59% of group core

income.

–Trading gains and investment income amounted to ISK 19.8bn (EUR 181m),

compared to the 6M 2007 figure of ISK 14.8bn.

— The bank’s total assets amounted to ISK 3,970bn (EUR 31.9bn) at the end

of June 2008 compared with ISK 3,058bn (EUR 33.4bn) at the beginning of

2008. Total assets have decreased in EUR terms by 4.4% during H1 2008.

— The bank’s liquidity has continued strong, with liquid assets amounting

to ISK 7.8bn at the end of June 2008.

Highlights of Q2 2008:

— The bank’s after-tax profit in Q2 2008 was ISK 12.0bn (EUR 101m).

— Net interest income in Q2 were ISK 20.9bn (EUR 176m).

— Net fees and commissions were ISK 10.9bn (EUR 92m), the same figure as

in Q1 2008. The bank’s fees and commissions were at a record high in both

these quarters.

CEO Sigurjón Þ. Árnason:

“Landsbanki’s H1 financial results are very satisfying. This is not least

significant in view of the challenging circumstances prevailing on

international financial markets. The group’s core income has increased by

32% over the first half of last year, and ROE for the same period was 35%.

Landsbanki took a major step forward in Q2 when announcing the extension of

its internet savings platform to continental Europe, with the introduction

of the Icesave retail deposit programme in the Netherlands. There are now

over 350,000 Icesave accounts in the UK and the Netherlands, and over 50%

of Icesave UK deposits are now term deposits. Landsbanki will continue to

augment the share of deposits in its funding. The operational platform of

Icesave in Netherlands is designed to be both flexible and robust,

facilitating its adaptation to other selected European markets in the

coming months.”

CEO Halldór J. Kristjánsson:

“The Icelandic economy is returning to balance after years of impressive

growth. Developments in H1 reflect this adjustment, in particular the

revaluation of the ISK and a temporary inflation spike. By taking long

positions on both foreign currency and inflation, Landsbanki has limited

the negative impact of currency depreciation on its equity ratio and

balance sheet. Icelandic households are partly sheltered against short term

effects from rising inflation, as typical mortgages carry fixed real

interest rates. The fact that the lending growth of the largest Icelandic

banks has been mainly abroad, or to domestic corporates with international

exposure, also reduces the impact of currency depreciation.

The Icelandic economy is anchored in sectors not negatively impacted by the

current market downturn, such as food production and technology as well as

environmentally sustainable power generation. New power intensive projects

have increased Iceland’s export capacity and will facilitate ongoing

economic adjustment. Increased profitability of exploiting abundant energy

resources encourages FDI into energy intensive industry development.

Additional energy production will increase the level of GDP by around 4%,

0.8% additional GDP growth annually for a period of 5 years.”

For further information contact Landsbanki’s CEOs:

Sigurjón Th. Árnason, Tel. +354 410 4009 / +354 898 0177 and Halldór J.

Kristjánsson, Tel. +354 410 4015 / +354 820 6399.

Results Presentation in London 29 July

Mr Sigurjón Þ. Árnason and Mr Halldór J. Kristjánsson, joint CEOs of

Landsbanki, will present Landsbanki’s Q2 2008 results to analysts and

investors, followed by a Q&A session. Conducted in English, the

presentation will be available live on www.landsbanki.com/ir, where

relevant data and presentation material will be posted simultaneously.

Time: 4 pm UK (3 pm GMT and 5 pm CET)

Venue: Beaufort House 15 St Botolph Street, London EC3A 7QR

Registration: Due to strict and time-consuming security controls please

make sure to complete your registration on

http://www.landsbanki.is/english/registration/q22008results

Live webcast and Conference call

For those who wish to join the meeting remotely, a webcast of the

presentation can be accessed on www.landsbanki.com/ir. A dial-in will also

be available – if you wish to participate please call +44 (0) 1452 569 103

at least 10 minutes prior to the start.

Replay and presentation material

All presentation material, plus a replay of the webcast and a podcast of

the telephone conference, will subsequently be available and archived on

www.landsbanki.com/ir under reports and financials.

Results Presentation in Reykjavík 29 July

Mr Sigurjón Þ. Árnason and Mr Halldór J. Kristjánsson, joint CEOs of

Landsbanki, will present Landsbanki’s Q2 2008 results to analysts and

investors, followed by a Q&A session. The presentation will be held at 8.30

am on Tuesday, 29 July, at Hilton Nordica Hotel in Reykjavík.

Landsbanki Consolidated Interim Financial Statements 30 Jun 2008 :

http://hugin.info/136348/R/1238856/265184.pdf

EXCEL – Landsbanki Consolidated Interim Financial Statements 30 Jun 2008:

http://hugin.info/136348/R/1238856/265185.xls

Landsbanki Press Release Q2 2008:

http://hugin.info/136348/R/1238856/265187.pdf