Landsbanki Íslands announces that the Icelandic Financial Services Authority, the Fjármálaeftirlitið (FME) has decided to take over the powers invested in Landsbanki's shareholders meeting and Landsbanki's Board of Directors. The FME has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect.

Members of the receivership committee are Ársæll Hafsteinsson, Einar Jónsson, Lárentsínus Kristjánsson, Lárus Finnbogason and Sigurjón Geirsson.

The receivership committee have stated the following:

• The objective of the committee is to ensure the continued operations of the commercial banking operations of Landsbanki Íslands hf. in Iceland.
• A public notice to debtors will not be issued.
• Provisions of Icelandic insolvency laws do not apply to the operations of Landsbanki while the receivership committee is responsible for the matters of the bank. Ceasure of assets can not be made against Landsbanki during the same period.

By law, the action of appointing a receivership committee, can not have the effect of creating a default under any loan documents.