There has been considerable success in increased reclaims of the asset portfolio of Landsbanki Íslands hf. during the last quarter of 2010, for which summary figures are published today. The asset portfolio increased by ISK 37 billion from the end of the third quarter and the value of the portfolio increases from ISK 1,138 billion to ISK 1,173 billion based on the end of year 2010. The real value of the asset portfolio has increased in foreign currencies for just under ISK 160 billion from April 30^th 2009 to the end of year 2010, or an average of almost ISK 23 billion for each quarter. Due to the fact that the vast majority of the bank’s asset portfolio is in foreign currencies the amounts in foreign currencies give a realistic comparison of its valorisation. Only a little over 8% of the bank’s assets are in Icelandic Krona.

If based on the fixed exchange rate of the Icelandic Krona against foreign currencies on April 22^nd 2009 the reclaims of the bank at the last return of year are estimated to be about ISK 1,263 billion or a little under 96% of the registered priority claims but ISK 1,175 billion or about 89% if based on the exchange rate of the Icelandic Krona at the last return of the year.

As has been previously stated the total assets of the bank were assessed at ISK 1,175 billion at the end of year 2010 based on the exchange rate of the Icelandic Krona at the time, but they were assessed at ISK 1,100 billion on April 30^th 2009 based on the exchange rate of the Icelandic Krona at the time. It was very advantageous that cash was collected faster during the last year than according to previous predictions and the balance of cash at the end of year was at ISK 361 billion. According to the bank’s assessment at the beginning of 2010 it was assumed that cash would be under ISK 320 billion but the real balance turned out to be over ISK 360 billion. Thus the bank’s results exceeded previous estimates.

Deloitte in Iceland has reviewed work processes, methods of work and the results of the resolution committee of Landsbanki Íslands hf. for the estimated reclaims according to the above and delivered a report to the bank on the issue. Deloitte’s conclusion is that work processes and methods of work are solid and that the results of the asset assessment of the bank are correct based on the given premises.

Further information on the financial status of Landsbanki Íslands hf. for 2010 can be found in the bank’s website, www.lbi.is, under the shortcut tab Financials Q4 2010.