Notice to Creditors

On 5 November 2009, Glitnir hf. (“Glitnir’) announced the potential increase in its liabilities of EUR 752 million, relating to certain transactions identified as a result of Glitnir’s ongoing claims registration process. Following the creditor meeting on 5 November 2009, the Resolution Committee engaged Deloitte hf. (“Deloitte Iceland’) to review these transactions in order to provide further information in relation to their nature and potential quantum.

As part of Deloitte Iceland’s work, all open repo/securities lending transactions involving Glitnir´s bonds were reviewed. The conclusion of Deloitte Iceland´s review was that the potential liabilities regarding these transactions at the time of Glitnir’s collapse totalled approximately EUR 793 million (being EUR 41 million higher than the EUR 752 million announced to creditors on 5 November 2009). The total adjustment of EUR 793 million represents approximately 5.5% of the total liabilities as at 30 June 2009, as originally published on 31 August 2009. The Resolution Committee’s current view is that these liabilities will be treated in line with the other issued bonds included within “Debt issued and other borrowed funds” in the Statement of Assets and Liabilities as at 30 June 2009.

Given the time available to conduct the review, the eventual total liability may be greater or less than EUR 793 million. A final determination of the liability relating to these transactions will be known following completion of the ongoing claims registration. The last day creditors are able to submit claims against Glitnir is 26 November 2009.

On behalf of Glitnir's Resolution Committee,
Kristján Óskarsson