Continued delays in redemptions

Because the temporary suspension of trading in financial instruments issued by Exista, Straumur and Spron is still in force, delays in redemptions for the funds listed below continue to apply.

Clients can still place orders but they will not be executed until the Financial Supervisory Authority authorises the resumption of trading in the financial instruments of these companies.

Kaupþing Hávaxtasjóður
Kaupthing Liquidity Fund EUR
Kaupthing Liquidity Fund USD
Kaupthing Liquidity Fund GBP
Kaupþing Heildarvísitölusjóður
Kaupþing Úrvalsvísitölusjóður
Kaupþing ÍS-15
Kaupþing ÍS-5 (institutional investor fund)
ICEQ verðbréfasjóður
Kaupþing Verðbréfaval 1-5

Because markets in currency, forward FX and forward FX swaps are disfunctional the continued delay in dedemption for Kaupþing Erlend Skuldabréf continues to apply.

Delays in the redemptions of the funds listed above are pursuant to Par. 2 of article 27 and Par. 2 of article 53 of Act no. 30/2003 on Undertakings for Collective Investment in Transferable Securities (UCITS) and Investment Funds.

In addition, the Board of Directors of Kauphting Investment Funds has decided on the continuing delay in redemption for Kaupthing Investment Funds – Icelandic Equity.

The Board of Directors of Kaupthing Manager Selection has decided on the continuing delay in redemption for KMS BRIC, KMS Global Equity, KMS Europe and KMS Emerging Markets.

November 27, 2008