Due to press reports and claims concerning fund transfers between Landsbanki subsidiaries and the parent company during the period leading up Icelandic financial enterprises being placed in receivership by the Icelandic FSA, as provided for by newly adopted legislation, Landsbanki would like to state the following:

1. No such transfers were made between Heritable Bank and Landsbanki during the period in question and Heritable Bank remained fully financed.
2. No transfers were made from Landsbanki London Branch to the parent company in Iceland during the period in question; on the contrary, Landsbanki Íslands hf. transferred substantial funds to its UK branch during this time to fulfil its Icesave commitments.

Landsbanki would like to emphasise in particular that reports of this matters and statements to this effect by UK Government officials do not apply in any way to Landsbanki.