SOURCE: Landsbanki Íslands hf

February 24, 2007 07:08 ET

Moody's Upgrades Landsbanki to Aaa and Changes BFSR Outlook to Stable

REYKJAVÍK, UK -- (MARKET WIRE) -- February 24, 2007 --

Today, 24 February 2007, Landsbanki received an upgrade to Aaa from A2, the highest possible rating for long-term commitments. Concurrently, the bank's outlook on financal strength was changed to stable from negative. Its short-term rating of P-1 is unchanged.

Moody's rating of Landsbanki is now Aaa/P-1/C compared to the previous rating of A2/P-1/C. The rating upgrade results from Moody's updated bank financial strength rating (BFSR) methodology and new Joint Default Analysis (JDA) methodology, taking into account likelyhood of government support and Landsbanki's systemic importance in Iceland.

Attached is the press release published by Moody's today stating the ratings results for banks in Iceland.

For further information:

* Sigurjón Th. Árnason, CEO, Tel. +354 898 0177, Halldór J. Kristjánsson, CEO, Tel. +354 820 6399, and Brynjólfur Helgason, MD of International Banking Tel. +354 820-6340. * Landsbanki Investor Relations - Tinna Molphy, and tel: +354 410 7200 / mob: +354 861 1440. * Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 / mob: +44 7711 264 157.

About Landsbanki: Landsbanki is a growing European bank with total assets of ISK 2,173 billion (EUR 23.2bn) and a market capitalisation of ISK 321 billion (EUR 3.4 bn) at year-end 2006. Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol < LAIS IR >. Landsbanki is rated by Moody's (Aaa / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

Since its establishment in 1886, Landsbanki has been instrumental in the economic development of business and industry in Iceland. Landsbanki has positioned itself as Iceland's primary provider of general and specialised financial services to individuals, corporate entities and institutions. The bank holds a market share of over 30% in all major business segments and has the country's most extensive branch network.

Building on its strong foundation in Iceland, Landsbanki has successfully extended its financial operations into new markets, focusing on serving mid-cap corporates in Europe in a transactional setting. The bank's unique product line includes access to both debt and equity markets; its research department. is among the comprehensive in Europe, including some 90 analysts covering more than 800 European stocks locally. Landsbanki and its subsidiaries have operate in all major financial centres of Europe, and have North American representation in New York and Halifax. Through its extensive distribution network, Landsbanki has a strong platform to deliver targeted financial services based on local expertise.


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