Sjóvá's financial restructuring is now complete. A new company with the name Sjóvá will be established to take over only the insurance activities of the former company. This means that investment activities involving real estate have been separated from Sjóvá's traditional insurance activities.

Kristján Davíðsson the CEO of Glitnir hf. has requested to leave Glitnir hf. due to assignments outside of Iceland. The Resolution Committee has agreed and wishes him all the best in the future. Kristjan will assist the RC in the coming months on certain assignments. Ingolfur Hauksson, our CFO, will take the CEO post until further decided.

Glitnir banki hf., Reg. No. 550500-3530, legally domiciled at Kirkjusandur 2, 105 Reykjavík, Iceland, but currently located at Sóltún 26, 105 Reykjavík has been granted a moratorium pursuant to a ruling of the Reykjavik District Court until 13 November 2009. On 12 May 2009, the Reykjavík District Court appointed a Winding-Up Board for the bank, which will handle, for instance, claims against the bank while the moratorium is in effect and after winding-up proceedings commence upon the conclusion of the moratorium.

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.

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.