A Moratorium order on Glitnir hf.

On 24 November 2008 the District Court of Reykjavik granted a Moratorium order on Glitnir hf.. The Moratorium is not a bankruptcy proceeding and does not affect Glitnir's banking licences or its ability to operate as a bank in those jurisdictions where that is appropriate. Rather it is a specialised proceeding under Icelandic law designed to provide Glitnir with appropriate global protection from legal action taken, or anticipated to be taken, by its creditors.

The Moratorium order will ensure that all creditors of Glitnir are treated fairly and appropriately under Icelandic law and EEA directives. It will also give Glitnir time to consider all strategic alternatives including an arrangement with its creditors that will permit Glitnir to emerge from the Moratorium as a going concern. In order to allow for due consideration of those alternatives, the Resolution Committee has no intention of selling significant assets other than in exceptional circumstances. The Resolution Committee believes that retaining and managing the assets of Glitnir will maximise the value of those assets, and will support a restructuring of Glitnir and its emergence from the Moratorium procedure.

Steinunn Gudbjartsdottir, supreme court attorney, a former member of the Glitnir Resolution Committee, has been appointed Moratorium Administrator, reporting to the District Court of Reykjavik, and will supervise the actions taken by the Resolution Committee.

Glitnir's Resolution Committee has begun meeting with representatives of its creditors to solicit their input on strategic alternatives and Steinunn has indicated her desire to have those discussions continue. Many of Glitnir's creditors have expressed support for this process and the Resolution Committee expects it to continue during the Moratorium period. The Resolution Committee's goal is to work with representatives of its creditors towards a negotiated framework for maximising Glitnir's ability to repay its creditors over time.

For the avoidance of doubt, New Glitnir banki hf, which assumed the domestic Icelandic operations of Glitnir on 14 October 2008, is completely unaffected by the Moratorium and will continue to provide a full service to its clients in Iceland.

For and on behalf of
The Resolution Committee of Glitnir hf.