Over the past few months, Glitnir's Resolution Committee, the Sjóvá Board of Directors, and Íslandsbanki's Corporate Finance have been working on the restructuring of Sjóvá. The work is expected to be completed in the next few days. The goal of the restructuring is to ensure the best interests of Sjóvá's customers, and to maximise the company value.

Glitnir hf. has appointed the London office of Kroll to assist the Committee in investigating potential irregularities in transactions undertaken prior to the bank's collapse. The goal of the investigation is to pursue and recover any assets from those who may have benefited from, or were responsible for, such irregularities. Kroll is a global independent forensic investigation firm and a leader in its field.

As a result, and with reference to Art. 13 of Act No. 21/1991, the bank's creditors are invited to a meeting, to be held on Thursday, 5 November 2009, at 10:00 am at the Hilton Reykjavík Nordica, Suðurlandsbraut 2, Reykjavík.

This past week Glitnir’s assets in Norway, which have been impounded since the bank’s collapse last October, were released. The action gives the bank’s Resolution Committee unrestricted control over its assets in Norway, which are valued at around ISK 100 billion.

Glitnir’s Resolution Committee has reached agreement with Milestone ehf., enforcing its charge on the entire share capital of Moderna Finance AB, a subsidiary of Milestone ehf. in Sweden.

Glitnir’s Resolution Committee and the Central Bank of Luxembourg (BCL) have signed an agreement providing for settlement of debts for Glitnir’s subsidiary, Glitnir Bank Luxembourg S.A. BCL is part of the network of European central banks in member countries of the Eurosystem.

Moderna Finance AB, a subsidiary of Milestone ehf. in Sweden, has concluded agreements for the sale of its insurance company Moderna Försäkringar and asset management company Aktie Ansvar. The company also intends to sell the life insurance company Moderna Liv and the bank Banque Invik.

On 19 February 2009 the District Court of Reykjavik ruled in favour of Glitnir’s request for an extension to the Moratorium order originally granted on 24 November 2008. The extension period is to end on 13 November 2009.

The Resolution Committee of Glitnir bank is pleased to announce the appointment of UBS Securities LLC (“UBS”) to act as financial and capital markets advisor to the Resolution Committee in connection with certain matters relating to the restructuring of Glitnir bank.

On 24 November 2008 the District Court of Reykjavik granted a Moratorium order on Glitnir hf. The Moratorium is not a bankruptcy proceeding and does not affect Glitnir's banking licences or its ability to operate as a bank in those jurisdictions where that is appropriate.