SOURCE: Glitnir

August 24, 2006 06:26 ET

Glitnir consolidates Capital Market and Strategic Support units:

REYKJAVIK, ICELAND -- (MARKET WIRE) -- August 24, 2006 --


GLITNIR REORGANISES TO STRENGTHEN CUSTOMER FOCUS AND ALIGNMENT OF ACTIVITIES

Reykjavik, 24 August 2006 - Glitnir today announced plans to further strengthen the organisation. The change is intended to align capital markets activities for further development and improve integration across the group in information technology, back-office, facility management and project management. The main changes are:

* Frank O. Reite will take on overall responsibility for the group's capital markets activities with business units in Oslo (Glitnir Securities, Glitnir Kapitalforvaltning and UNION Gruppen), Reykjavík (Glitnir Markets Reykjavik) and Stockholm (Fischer Partners)

* Finnur Stefánsson will take on overall responsibility for the group's shared services, including IT, back office, payroll processing and general services

The changes are designed to optimise management focus, ensure efficiency and integration of services and initiatives, and to build an even stronger platform for further profitable growth.

"In just two years, Glitnir has achieved strong organic growth internationally and completed seven acquisitions. We are now aligning our organisation and management focus to maximize the value of the current activities, as well as breaking ground for further growth," commented Bjarni Ármannsson, CEO of Glitnir.

"The change will enable better operational focus across our divisions and between our units, and better day-to-day service to our customers, while ensuring that we maintain focus on strategic developments that underpin sustainable success," said Bjarni Ármannsson.

Brief description of the two areas:

Glitnir Markets, headed by Managing Director Frank O. Reite will include Capital Markets activities in Iceland, Norway and Sweden. Capital Markets Reykjavik includes FX sales, brokerage, derivatives and FX managed accounts. The customers include some of Iceland's largest institutional investors', international hedge funds, international banks and other clients of Glitnir. The different activities will be headed by the current management group of Capital Markets, including Jóhannes Baldursson for FX sales, Ingi Rafnar Júlíusson for brokerage, Óttar Guðjónsson for derivatives and Magnús Pálmi Örnólfsson for FX managed accounts. Frank O. Reite will focus on the integration and creation of synergies between Capital Markets activities in the bank in Iceland, Norway (Glitnir Securities and Glitnir Kapitalforvaltning, as well as UNION Gruppen) and Sweden (Fischer Partners AB).

As a part of the change, the equity, bond and macro research unit in Iceland will become part of Glitnir markets. Karl Otto Eidem, acting Managing Director at Fischer Partners will take the overall responsibility for the coordination of market research in the group. Ingólfur Bender will lead the Icelandic research team as a part of the brokerage operation in Iceland and remain Chief Economist of Glitnir.

"The change will also lead to more focus on market research activities in Iceland, Norway and Sweden with the objectives of supporting our customers in making better decisions on their investments," adds Bjarni Ármannsson.

Furthermore Frank O. Reite will also be responsible for the banking activities in Norway and Sweden, namely BNbank and Glitnir Bank ASA. Frank O. Reite became part of the Glitnir community when the Bank (then Íslandsbanki) in 2004 acquired KredittBanken (Glitnir Bank ASA). He has been a member of the Executive Management Board since 2005.

Shared Services, headed by Managing Director and Chief Operating Officer Finnur Stefánsson, will provide supportive services, such as strategic use of information technology, back-office, facility management and payroll processing. The unit employs about 250 people in Reykjavik. Finnur Stefánsson has worked with the Bank for nine years and he has served as Managing Director for Capital Markets for the past six years. He has been a member of the Executive Management Board since 2000.

"After the major changes our bank has gone through both in terms of organic growth and acquisitions, it is very important for us to create the Shared Services unit headed by Finnur Stefánsson as COO. The shared services unit will both support our domestic business and our subsidiaries and branches. Alignment of IT platforms and vision in the information technology area is pivotal to the bank's future success. With this change we will harmonise our approach in this field," said Bjarni Ármannsson. The changes will take effect immediately.

Capital Markets Day 13 September

Earlier this week, Glitnir announced that the bank will host its first Capital Markets Day in Reykjavik on Wednesday 13 September. Participants will be able to meet Glitnir's executive management and receive updates on the group's operations, plans and strategies. For booking, please e-mail ir@glitnir.is

About Glitnir

Glitnir is a leading financial group that offers universal banking. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of banks in Luxembourg (Glitnir Bank Luxembourg S.A) and Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, as well as 50.1 percent of Union Gruppen). Glitnir's subsidiary BNbank in Norway recently entered into an agreement to acquire 45 per cent of the shares in Norsk Privatøkonomi ASA. Norsk Privatøkonomi ASA is an independent financial advisory company with 12 branches in key areas of Norway (governmental approval pending in Norway). Glitnir own the leading Swedish brokerage firm Fischer Partners. The bank has a branch in London and in Copenhagen, Denmark. Glitnir has an office in Halifax, Canada. Glitnir plans to open an office in Shanghai, China in 2006. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced record profits, with a return on equity of 45.5 percent for the first half year of 2006 - making second quarter 2006 the best ever in the bank's history.

For further information, go to www.glitnirbank.com
Press contacts:
Bjarni Ármannsson
CEO, Glitnir
mobile: +354-844 4002
e-mail: bjarni.armannsson@glitnir.is

Frank O. Reite
Managing Director Capital Markets and overall
responsible for Glitnir's activities in Norway
mobile: +47-915 80 604
e-mail: for@glitnir.no

Finnur Stefánsson
Managing Director
Mobile: +354-844 4464
e-mail: finnur.stefansson@glitnir.is

Bjørn Richard Johansen
International Communication and Public
Affairs Director, Glitnir
e-mail: brj@glitnir.no
mobile: +47-47 800 100

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