Kaupthing Edge increases instant access savings account to market leading 6.55% AER*

• Instant Access Savings Account
• 6.55% AER (6.36% gross)
• Rate guaranteed to be at least 0.3% above base rate until 1st February 2012
• Min balance upon which interest is paid: £100
• Max balance: £2 million (across all accounts)
• No tie ins or charges
• 24-hour online access

• Fixed Term Deposit Accounts
• 6 month term account: 6.97% AER (6.85% gross)
• 12 month term account: 7.15% AER (7.15% gross)
• 36 month term account: 7.15% AER (7.67% gross)
• 24-hour online access
• Min balance upon which interest is paid: £1,000

Savers are able to open a Kaupthing Edge instant access account online with a minimum investment of £1 (with the minimum balance upon which interest is paid being £100), offering access to their money with no tie-ins or fees.

Ashley Whittaker, Head of Retail Savings at Kaupthing Edge, comments: "Kaupthing Edge is committed to offering savers competitive returns on their deposits and we have therefore increased the rate on our instant access account to a market leading 6.55% AER*. This new rate, which will be available to customers from 30 July 2008, is in addition to our announcement earlier this month to increase the rate on our 12 and 36 month fixed term accounts to 7.15% AER.

"There are currently some great options for savers looking to maximise the returns on their money and we believe that Kaupthing Edge is offering some of the most competitive products in the savings market. In addition to our market leading rate, our instant access account also offers a rate guarantee of at least 0.3% above base rate until 2012."

Notes to Editors:

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

1. Kaupthing Edge is the online retail financial services offering of Kaupthing Bank and its UK subsidiary, Kaupthing Singer and Friedlander
2. Kaupthing Edge's internet access savings account and fixed term deposit accounts are available at www.kaupthing-edge.co.uk. See account details below.
3. Kaupthing Edge deposits are currently held by Kaupthing Singer and Friedlander Ltd and are protected under the UK Financial Services Compensation Scheme. Under the UK Financial Services Compensation Scheme, financial protection is limited to 100% of the first £35k of all deposits with KSF Ltd.
4. Kaupthing Edge is a global brand operating in the UK, Isle of Man, Germany, Norway, Sweden, Finland, Denmark, Switzerland, Belgium and Luxembourg.
5. Kaupthing Bank is Iceland's largest bank and offers comprehensive commercial and investment banking services to individuals, companies and institutional investors. Kaupthing Bank operates in thirteen countries with its headquarters located in Reykjavík, Iceland.
6. Kaupthing Singer and Friedlander Ltd offers integrated financial services, including Corporate Banking, Investment Banking, Asset Management, Treasury, Asset Finance and comprehensive wealth management for Private Banking clients.

Registered Office:

For further information, please contact:

Kaupthing Edge Savings Product: please contact Lansons Communications

Anna Schirmer: 0207 294 3605 or 07765567842

Jennifer Comerford 0207 294 3678 or 07977473045

For Kaupthing Bank – corporate: please contact Brunswick Communications

Anita Scott / Nigel Prideaux 00 44 207 404 5959