Equity and Other Variable-Income Securities Listed

Welcome Address Bjorgolfur Gudmundsson Chairman

Landsbanki’s Profile & Halldor J. Kristjansson Strategic Objectives Group Managing Director & CEO

Landsbanki’s Financial Sigurjón Þ. Árnason Group Managing Director & CEO Results 2005

Landsbanki’s International Brynjolfur Helgason Managing Director Int. Banking & Alternate Operations CEO Landsbanki’s Profile and Halldór J. Kristjánsson Strategic Objectives Group Managing Director & CEO 1 Landsbanki – A Changing Group 2 Managing Risk in a Growing Economy 3 Strategy and Objectives A Growing North European Bank

Creation of a pan-European platform to further Moody's expand on Landsbanki´s products and services Long Term A2 - Teather & Greenwood Short Term P-1 - Kepler Equities Outlook Stable Bank Financial Strength C - Merrion Capital Subordinated Debt A3 Operations in 12 countries covering all major financial centers of Europe, as well as Jr Subordinated Baa1 representation in New York and Canada. Latest Review Feb 2005 Ratings Upgraded: A2 from A3 March 2005 Continued success and profitability of all Landsbanki franchises, including operations in Northern Europe and strong footing in domestic Fitch market Long Term A A record year in capital market funding activities Short Term F1 Strengthening of Capital Base Individual B/C Support 2 Credit Ratings Improved Outlook Stable Latest Review June 2005 Ratings Upgraded: B/C from C Nov 2005 Extensive Domestic and International Operations

Iceland – HQ & home market Core Income by Location* - A universal bank offering a full range of financial products and services 2003 2005 - Most extensive branch network with 46 branches 4% 5% UK & Ireland 16% - London, Edinburgh and Dublin Mainland Europe - France, Germany, Netherlands, Switzerland, Italy, 19% Spain and Luxembourg 65% N-America & Canada 91% - Offices in NY and Halifax

Lending by Location Ic eland UK / Ireland Continental Europe 14.000 Market Share in Iceland 2005 2002 12.000 35% Deposits 31% 27% 10.000 Lending 33% 26% Foreign 8.000 Equity Trading 35% 19% Iceland 6.000 Fixe d Incom e 23% 19% 22% Corporate Advisory 40 - 50% 7% 4.000 Mutual Funds 34% 31% 2.000 FX Trading 42- 45% 40 - 43% 0 Suppl. pension savings 25% 18% 2003 2005 *Excluding trading gains. Subsidiaries pro forma on a full year basis Top Nordic Banks (by market capitalisation) 0 4 1 25.000 . € million 23 3 9 2

20.000 . 18 394 7 15.000 71 3 531 4 . 0 13. . 12. 12 12 110 3

10.000 3 9. 0 8. 652 1 5. 0 152 8 5.000 7 4. 7 3. 700 5 504 2. 2. 2. 477 6 1. 948 65 0

a n R B o g a ki ki k k e d e p n n ás nk n i r ank ke O ank i di n an o rd n SE b m th a a B ba o N p an b dar Ba d neg N N e B ba B d Sa u sb s r e r r k s e d u O a a s l SK B sk Sy C e Dn Sw Ka land r- y OK Sp an d Lan Ís J D an mu H au tr S 1 Landsbanki – A Changing Group 2 Managing Risk in a Growing Economy 3 Strategy and Objectives Economic Outlook Positive - In Iceland and Abroad

China and Asia lead the upswing GDP growth 1995-2006 GDP growth picking up in Europe 8% - Expansion of Icelandic companies abroad will Average 1995-2004 continue 2005 - Growth opportunity for Landsbanki's European 2006 platforms 6% Outlook for continuing high GDP growth in Iceland through 2010 4% - Likelihood of additional power-intensive industrial projects has increased - Public authorities considering major developments 2% - Good employment situation will continue, with record-high purchasing power - Better equilibrium developing on the real estate 0% market, reducing inflationary pressure Euroland UK OECD Iceland Ireland

Source: OECD, Ministry of Finance Excellent Performance of the Equity Market

Equity indices The success of Icelandic business and industry is Equity indices in Europe and the US reflected in equity market developments

Listed companies raised around ISK 350 billion on the Iceland Stock Exchange (ICEX)

- ISK 227 billion through bond and bill issuance

- ISK 123 billion by issuing new share capital

ICEX-15 index rose by 64.7% For the most part, share price increases have been as a result of increased profitability P/E ratios for 2006

15.9 15.9 16.2 16.2 14.6 The P/E ratio of ICEX-listed companies is currently 13.4 13.7 around 15.9 as compared to 15.9-16.2 for companies on European markets

While equities are priced on the high side, there are no signs of a price bubble

UK Germany Sweden Ireland France Iceland Finland Source: Bloomberg, Landsbanki Research Continued Internationalisation & Diversification of the Icelandic Economy

FDI and portfolio capital owned abroad by residents Strong growth of FDI and Portfolio € billion 12 capital abroad – 90% of GDP 2005 10 Portf olio c apital

Firm resolve by Alcan, Alcoa and 8 Foreign direct investment Century Aluminium to further 6 expand in Iceland 4 2 - Foreign investment lead growth 0 will continue through 2010 1997 1998 1999 200 0 2001 2002 200 3 2004 200 5e Source: The Central Bank of Iceland - Annual GDP growth expected to FDI as % of GDP

continue to exceed OECD average 40% until 2010 Inward investment Outw ard investment Continued growth underpinned by 24% strong inward and outward FDI 15% 9%

3% 4%

1997 2003 2006e Source: Economist Intelligence Unit, Landsbanki estimates for Iceland Diversification of Corporate Earnings

Cash Flow of Listed Companies Operations of the largest companies listed on ICEX are predominantly international

Assets of Icelandic banks are primarily 25% foreign currency denominated 75%

- Over 50% of local lending is foreign currency denominated ISK Foreign Currencies - 30 – 70% of total bank assets are employed in foreign operations Sources of Continued Growth Growing pension funds which are fully - Above 75% of total bank assets are in funded foreign currency Icelandic entrepreneurs with successful About 75% of cash flow of listed international investments companies is in foreign currencies Capital gains from privatisation, restructuring and M&A Successful exits from established sectors have created wealth Centralised Risk Management

Credit limits for the group managed through Landsbanki’s centralised Credit Committee - Market Risk positions for the Group are managed through the banks ALCO committee - Market risk may not exceed 15% of its total risk-weighted asset base. - Market risk assessment and control is done through Head Office Risk is actively managed, assessed and controlled centrally at group level Emphasis on consolidated measurements, controls and reporting Management of Key Risk Factors

Credit Risk – responsible loan growth Equity exposure as % of Total Assets - Iceland’s largest and strongest companies (35%) - Foreign portfolio (40%) 6,0% - Retail in Iceland and some in UK are in large part mortgages where substantial portion of portfolio has 4,0% been hedged (25%) 2,0% The level of equity risk as the predominant market risk factor has remained constant 0,0% Equity exposure has shifted from domestic to 2000 2001 2002 2003 2004 2005 foreign equities (15% Æ 47%)

Underlying good growth in fees and commission – Equity Exposure Portfolio operations acquired in 2005 are principally fee- Dom estic vs . Foreign based operations 100% 80% Emphasis on broader funding sources 60% For eign Deposits currently fund 2/3 of London banking - 40% Domest ic operations and growing 20% - Increased access to securitization - part of London 0% operations already funded through securitisation 2003 2004 2005 Fully Capitalised Against Adverse Market Developments

Last year Landsbanki strengthened it’s capital base considerably and can withstand adverse Borrowers of Foreign Currency movements in capital markets.

The regulator’s stress test assumes simultaneous Individuals Companies adverse market developments 2% with partial hedge - 25% fall in equity prices, 20% loss of NPL and 12% 7% fall in bond prices - Application of the test and adding 25% depreciation of ISK markets affects CAR by about 2,5%, from 13,1% to 10,6% Stress test of lending portfolio where equity is collateral or underlying hedge, confirms ability to withstand considerable adverse development Companies with currency Adverse developments in FX markets has a limited hedge effect on customers – majority of borrowers of 86% foreign currency loans are hedged against currency Exposures 1 Landsbanki – A Changing Group 2 Managing Risk in a Growing Economy 3 Strategy & Objectives Overall Strategy & Objectives

Domestic Strategy

To reinforce and build upon Landsbanki’s position as the leading provider of universal financial services to households, corporations and institutional investors, based on long-term business relationships

International Strategy

Using the expertise and resources of the domestic universal bank to create Corporate Inv. a profitable international bank with strong corporate and investment banking banking emphasis and present in such major financial centers that support the overall strategy

Continue organic growth in international banking operations and acquire Banking low-risk banking assets that increase stable, recurring revenue streams operations -Diversification of risk and greater economies of scale -Positive impact on credit ratings -Improved access to markets International Corporate Investment Banking operations - Overview

Institutional Sales, Trading and Market Making Corporate Brokerage Corporate Finance Advisory Equity Research Pan European Investment trusts and Closed-End Funds corporate investment banking services Structured Lending

Cross-border Corporate Advisory

Asset Backed Lending

Deposits

Strategic Brand and product harmonization while preserving individual identity and specialty Priorities Strategic co-operation and consolidation of operational platforms 2006 Add additional corporate advisory and corporate finance capabilities International Banking Operations - Overview

Property Finance & Specialised Mortgages Specialty UK Deposit taking finance & banking services Other specialised SME financing

Private Banking Specialty wealth Corporate Banking management services Asset Management

Structured Corporate Lending Support the Cross-border Corporate Advisory International growth while providing a Asset Backed Lending platform for new Deposits funding strategies

Strategic Acquire low risk banking assets with deposit base Priorities 2006 Grow existing specialty lending operations and deposit taking Strategic Implementation in 2005 Landsbanki's International Banking Operations

Loans and Deposits - Heritable Bank £ Million Heritable 600 Continued focus on organic growth of mortgage and 500 Lending residential finance loan portfolios 400 Deposits Operations now fully deposit funded 300 200 Diversifying further into areas of specialty finance 100 - Acquisition of Key Business Finance 0 2000 2001 2002 2003 2004 2005

London Branch £ Million Total Loans and Deposits - London Branch 1.000 A year of growth and product diversification while developing the strategic relationship with T&G, Kepler 800 Lending and Merrion 600 Deposits New Asset Backed Lending team joined the branch 400

Deposit business started 200

0 Landsbanki Luxembourg Q1 2005 Q2 2005 Q3 2005 Q4 2005 € Million Ongoing product enhancement and specialization Loans and Deposits - Landsbanki Luxembourg

Wider geographic coverage 2.000

- Acquisition of life insurer Lex Life & Pension 1.500 Lending

1.000 Deposits

500

0 2003 2004 2005 A Unique Pan-European Platform for Corporate & Investment Banking

Teather & Greenwood Landsbanki Research Coverage - An established and highly regarded corporate and institutional stockbroker in the City of London Iceland 16 - The firm’s respected research and extensive list of Ireland 50 clients, in addition to a strong position in the secondary France 167 market is a great asset to Landsbanki Kepler Equities - Distinguished by its local presance and knowledge and pan-European distribution network UK 221 - Widely respected equity research based on local Italy 67 knowledge is an excellent fit with Landsbanki’s overall strategy

Merrion Capital Swiss 72 - Merrion’s recognised and awarded equity research gives Netherland 49 Spain 56 scope for harmonisation and development of products Germany and services 60 - A unique access for the Landsbanki Group to a market with unparalleled growth and significant similarities to A total of 758 companies covered our home market Landsbanki’s Financial Sigurjón Þ. Árnason Results 2005 Group Managing Director & CEO Main results from 2005

Comparison of Consolidated Financial Statements 2005 and 2004

Profit before tax and goodwill impairment for the period amounted to EUR 433 m and profit after tax and goodwill impairment was EUR 317 m

- As a result of partial merger with Burdaras on August 1 2005, an extraordinary EUR 39m goodwill amortization was recorded in 2005 representing the excess of the cost of acquisition over the fair value of the acquired assets.

Return on equity (ROE) before tax and goodwill impairment was 62% and 45% after allowing for taxes and goodwill impairment

Total assets amounted to EUR 18,805 m at year-end 2005

The ISK appreciated 10.5% against the Euro during the year which inflates the reported asset growth as measured in EUR Income Statement

2005 2004 Diff %

Interest revenues 850 393 457 116% Interest expenses 556 224 332 148% Net interest revenues 294 169 125 74%

Fee and commission income 236 117 119 101% Fee and commission expense -22 -15 -7 46% Net fee and commission income 214 102 112 110%

Dividend income 14 5 9 164% Net gain on financial assets and financial liabilities held for trading 139 47 92 195% Net gain on financial assets designated at fair value through profit and loss 75 56 19 33% Fair value adjustments in hedge accounting 0 0 0 0% Foreign exchange difference 5 4 1 19% Share of profit of associates 24 0 24 Net gain on sale of disposal groups held for sale 15 0 15 0% Other operating revenues 272 113 159 141%

Net operating revenues 780 384 396 103%

EUR million Interest Spread as a Ratio of Average Capital Position

3.45%

2.83% 2.62% 2.59%

2.23%

2001 2002 2003 2004 2005 Income Statement

2005 2004 Diff %

Interest revenues 850 393 457 116% Interest expenses 556 224 332 148% Net interest revenues 294 169 125 74%

Fee and commission income 236 117 119 101% Fee and commission expense -22 -15 -7 46% Net fee and commission income 214 102 112 110%

Net operating revenues 780 384 396 103%

EUR million Fee and Commission Income

2005 2004 Diff %

Securities * 88 44 4445 100%102% Asset Management 20 12 8 70% Foreign trade 5 4 1 25% Lending 35 12 23 194% Cards 15 10 5 48% Interbank revenues 13 12 10 2% Collection and payment services 7 6 1 16% Other commissions and fees 6 4 2 55% Subsidiaries 48 14 34 242% 236 117 119 101%

Fee and commission expense -22 -15 -7 46% Net fee and commission income 214 102 112 110%

* Securities includes Corporate Advisory, FX and Derivatives, Treasury, Derivatives Trading and Securities Trading

EUR million Income Statement

2005 2004 Diff %

Interest revenues 850 393 457 116% Interest expenses 556 224 332 148% Net interest revenues 294 169 125 74%

Fee and commission income 236 117 119 101% Fee and commission expense -22 -15 -7 46% Net fee and commission income 214 102 112 110%

Net operating revenues 780 384 396 103%

EUR million Trading Gains

IFRS "Previous GAAP"

Dividend income 14 NetStocNet gaink gaintradi on nong equi equityty holdings holdings 263263 Net gain on financial assets and financial NetBond gain tradi onng bond holdings --33 liabilities held for trading 139 NetFor egainign e xfromchan gFXe trading 55 Net gain on financial assets designated at OthShareer of profit of associates 47 fair value through profit and loss 75 Other 3 Fair value adjustments in hedge accounting 0 Foreign exchange difference 5 Share of profit of associates 24 Net gain on sale of disposal groups held for sale 15

272 272

EUR million Net Operating Revenues 350 2000 2001 2002 2003 2004 2005 294 300 272

250 214 200 169

150 108 113 100 102 100 90 69 73 54 42 45 50 38 17 3 0 -6 -50 Net Interest Revenues Commissions and Fees Proprieatary Trading Gains

EUR million Income Statement

2005 2004 Diff %

Net operating revenues 780 384 396 103%

Salaries and related expenses 162 89 73 81% Administrative expenses 106 76 30 39% Administrative expenses 97 57 40 70% Depreciation and amortisation 9 20 -10 -53% Operating expenses 268 166 102 62%

Impairment on loans and advances and assets held for sale 79 51 28 54% Profit before impairment on goodwill and income tax 433 167 266 160%

Impairment on goodwill 39 0 39 0% Income tax 74 21 53 258% Profit before minority interests 320 146 174 119%

Minority interests 4 2 2 108%

Net profit 317 144 172 119%

EUR million Cost-Income Ratio

66% 61% 57%

43%

34%

2001 2002 2003 2004 2005 Impairment on Loans and Advances

Allowance for losses at 1.60% 31.12.2005 176 1.47% Allowance for losses / 1.40% 1.33% loans and guaranties 1,17% 1.20% 1.17% Loans in arrears €77 million As a percentage of loans 0,55% 1.00%

0.80% 0.73%

0.58% 0.60%

0.40%

0.20%

0.00% 2001 2002 2003 2004 2005

EUR million Return on Equity

Return on equity before taxes and impairment on goodwill 61.8% 57.2% Return on equity after taxes 49.5% 45.2%

20.9% 17.0% 17.6% 13.9%13.1% 13.5%

2001 2002 2003 2004 2005 Actual Income 2005 2004 Net interest revenues 294 169 Net commissions and fees 214 102 Net gain on equity, securities and FX 272 113 Core Income Net operating revenues 780 384 Operating expenses 268 166 Impairment on loans and advances and assets held for sale 79 51 Impairment on goodwill 39 0 Profit before income tax 394 162

Cost Income Ratio 34% 43% ROE before tax 56% 56%

Adjustments Net interest revenues 47 14 Net gain on equity, securities and FX -272 -113 Impairment on goodwill (From Burdaras merger) 39 0 -186 -99

Core Income Net interest revenues 341 183 Net commissions and fees 214 102 Net operating revenues 555 285

Operating expenses 268 166 Impairment on loans and advances and assets held for sale 79 51 Profit before income tax 207 67

Core Cost Income Ratio 48% 58%

EUR million Core ROE before tax 30% 23% Business Segments

2005

Retail Banking 43 Corporate Banking 90 Securities and Trading 289 Asset Management & Private Banking 16 Other operations -5 Profit before impairment of goodwill and income tax 433

Impairment of goodwill (merger with Burðarás) -39 Profit before income tax and minority interests 394

Income tax -74 Minority interests -4 Net profit 317 EUR million Balance Sheet 31 Dec 1 Jan Change % 2005 2005

Cash and cash balances with Central Bank 222 218 4 2% Loans and advances 14,344 7,356 6,989 95% Trading assets 2,930 775 2,155 278% Financial assets designated at fair value through profit and loss 462 153 308 201% Derivatives held for hedging 63 59 4 6% Investment in Associates 83 45 38 83% Property and equipment 57 50 7 15% Intangible assets 116 19 97 513% Non-current assets and disposal groups classified as held for sale 220 119 101 85% Other assets 316 32 284 890% Total assets 18,815 8,827 9,988 113%

Deposits from credit institutions 1,936 733 1,202 164% Deposits from customers 4,473 2,610 1,863 71% Borrowing 9,237 4,491 4,745 106% Subordinated loans 657 270 387 143% Trading liabilities 355 97 258 267% Derivatives held for hedging 55 19 36 189% Tax liabilities 98 20 78 387% Liabilities included in disposal groups classified as held for sale 60 50 10 19% Other liabilities 424 72 352 487% Total liabilities 17,294 8,363 8,930 107% Share capital 142 95 47 49% Retained earnings 1,331 356 975 274% Total Landsbanki equity 1,473 452 1,022 226% Minority interests 48 12 36 296% Total equity 1,521 464 1,057 228% Total liabilities and equity 18,815 8,827 9,988 113% EUR million Balance Sheet

Assets Equity and Liabilities

Other Intangible assets Equity institutions assets Other 5% 8% 10% 1% liabilities 5% Trading Subordinated Assets and 18% loans financial 3% assets at fair value Deposits from customers 24%

Loans and advances Borrowing 76% 50%

Total assets EUR 18,815 m Total liabilities EUR 17,294 m Total equity EUR 1,521 m EUR million Securities and Shareholdings 31 Dec 1 Jan Change % 2005 2005

Trading assets 2,930 775 2,155 278% Financial assets designated at fair value through profit and loss 462 153 308 201% 3,392 929 2,463 265%

Bonds and other fixed-income securities 1,345 222 1,123 506% Equity and other variable-income securities 1,861 603 1,258 209% Derivatives in the money 186 104 82 78% Total securities and shareholdings 3,392 929 2,463 265%

Bonds and other fixed-income securities 655 21 634 2967% Equity and other variable-income securities 1,080 283 798 282% Forward and option contracts 1,736 304 1,432 471%

Bonds and other fixed-income securities 690 201 489 244% Equity and other variable-income securities 780 320 460 144% Derivatives in the money 186 104 82 78% Net securities and shareholdings 1,656 625 1,031 165%

EUR million Securities and Shareholdings

Equity and other variable-income securities

Listed Unlisted Total Foreign 320 92 412 53% Domestic 359 9 368 47% 679 101 780 87% 13% 100%

Bonds and other fixed-income secuirities

Foreign short term government/banking bills 312 Domestic long term government bills 377 690

Net foreign currency position +26

EUR million Equity and other variable-income securities

70.000 6,0%

60.000 4,8% 5,0% Net Equity holding and other 4,5% variable-income securities 4,3% 50.000 4,3% Net Equity holding and other 4,1% 4,0% 4,0% variable-income securities / Total assets 40.000

3,0%

30.000

2,0% 20.000

1,0% 10.000

0 0,0% 2000 2001 2002 2003 2004 2005 Foreign Lending Operations

40% Parent 5,000 Heritable Bank Landsbanki Luxembourg 35% 35% 4,500 Foreign lending operations/total lending 30% 4,000 27% 2,231 3,500 25%

3,000 22% 20% 2,500 17% 2,000 801 15%

1,500 536 10% 9% 1,000 488 1,680 173 5% 500 51 215 186 774 52 250 408 0 172 0% 31.12.2002 30.6.2003 31.12.2003 31.12.2004 31.12.2005

EUR million Equity Ratio - CAD

13.1%

Tier I Tier II 1.2%

10.4% 10.6% 9.9% 10.4%

2.9% 2.9% 2.6% 3.0%

11.9%

7.7% 7.8% 7.5% 6.9%

2001 2002 2003 2004 2005 Current Value of the Bank

Total issued nominal capital EUR 148 million 31.12.2002 31.12.2003 31.12.2004 03.02.2006 3,65 5,80 12,10 27,90

Stock price at 3 February 28

27.90 26

24 Landsbanki market value EUR 4.1 billion 22 20 Total equity ISK 1.5 18 billion – Price-to-book 16 ratio 2.79 14

A total of 29 thousand 10

shareholders 8

6 112% total share-holder return in 2005 4 2

0 jún.02 des.02 jún.03 des.03 jún.04 des.04 jún.05 des.05 Landsbanki’s International Presence

Reykjavik

Edinbourg

Dublin London Amsterdam

Luxembourg Frankfurt Paris Zurich

Milan Halifax

Madrid New York Landsbanki´s International Brynjólfur Helgason Operations: MD International Banking & International Funding Alternate CEO International Funding Total long-term issuance in EUR - Number of deals and arranging banks

6,000

€ 4.889 5,000 EUR million

4,000

€ 3.055 3,000

2,000

1,000 56 /28 Number of deals/ 57 / 33 arranging banks

2004 2005 Landsbanki’s Funding Activities 2005 Emphasis in Funding

1. Strengthening of capital ratios • by increasing share capital - March issuance, increase by EUR 145m - Burdarás merger in October, increase by EUR 570m • with issuance of subordinated notes: EUR 350m - EUR 150m Tier 1, perpetual, step-up - EUR 200m Tier 2, 10 years 2. Extending the maturity profile • First public issue of 7-years, EUR 300m • Two 5-year issues: EUR 1,200m - Total EMTN issuance in 2005: EUR 4,889m - Breakdown by maturity: - Less than three years but more than one year: EUR 1,903m - 3 - >5 years: EUR 815m - 5+ years: EUR 1,860m Landsbanki’s Funding Activities 2005 Emphasis in Funding

3. Increased diversification of bond investors • Over 170 new bond investors in 2005, 36% of total bond investors

• Improvement in geographic diversification 4. Emphasis on strengthening liquidity management • new liquidity management guidelines based on FME’s guidelines

• increased backup lines - to cover short-term funding: EUR 110m - to cover long-term funding: EUR 240m

• new committed credit lines at banks being established New Funding Pillars

5. Deposit taking at Landsbanki’s London Branch commenced in November 2005 - The deposits amount to a total of GBP 426 million (03/02/2006)

Deposit taking at Heritable Bank continues to go well - Heritable Bank is fully funded with deposits, a total of GBP 494 million in 2005 - Key Business Finance loan portfolio is fully securitised (£60m)

6. Securitisation of asset portfolios - London portfolios (mortgages and syndicate participations) starting in 2006

7. Extendibles (EXL´s) in the United States - Landsbanki´s debut transaction in the US market, USD 500m in December 2005, additional USD 100m in January 2006 Diversification of Long-term Funding

Breakdown of outstanding long-term issues

Greec e S candi navia 0% US 3% As ia Benelux Ireland Finland 2% 2% 9% 6% 1% UK Franc e 11% 15%

Switzerland 3%

S pain 5% Portugal 1% Oth er Germ any 2% Japan 20% 0% Austria It aly 4% 15%

A diversified group of 468 investors have participated Opportunities for US and Asian funding evident in Landsbanki´s public EMTN issues in total

As a % of total issuance in EUR Maturity Profile – Long term funding

6.0 00

5.0 00

4.0 00

3.0 00

2.0 00

1.0 00

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012+

Actual Forecast (2007-2012+ w ithout grow th) International Long-term funding in 2006

• Total re-financing on long-term international borrowings in 2006 amounts to EUR 1.2 bn

• International funding for Landsbanki in 2006 is forecasted to be over EUR 3bn, including re-financing of maturities

• Total international funding will continue to be raised through plain vanilla and structured private placements, as well as through public bond issues on international capital markets

• Aim to seek further international diversification in funding operations