Straumur-Burdarás will carry out the Bank’s accounting and prepare its annual financial statements in Euros effective from 1 January 2007

The Board of Directors of Straumur-Burdarás Investment Bank hf. has decided to carry out the Bank’s accounting and prepare its annual financial statements in Euros effective from 1 January 2007. This decision also means that the Bank’s equity will be denominated in Euros.

This decision has been made with consideration given to the long-term interests of the Bank and its shareholders. Straumur-Burdarás has the goal of being a leading Nordic investment bank with headquarters in Iceland. An ever-increasing portion of the Bank’s assets and revenues is in foreign currencies, and the proportion of the Icelandic króna in its business transactions is steadily decreasing.

The Bank is of the opinion that this change will bolster foreign investors’ interest in Straumur-Burdarás, as well as broadening the Bank’s shareholder group and supporting continuing international growth.