Investors are being sought

7/10/02

The Executive Committee on Privatisation, acting for the Minister for Industry and Commerce, requests notification from investors interested in acquiring at least 25% in Landsbanki Íslands hf. and Búnaðarbanki Íslands hf. An investor is being sought, domestic or foreign, with the objective of strengthening the bank and promoting competition in the Icelandic financial market. Notifications should include information on financial standing, knowledge and experience of financial markets, the size of the holding sought by the party, proposed cash price and plans regarding the future operation of the bank in which an interest is expressed. Buyers should meet the eligibility requirements for holders of active participating interests under Article 10 of Act No. 113/1996 on Commercial Banks and Savings Banks. Reference is also made to the provisions of the Competition Act, No. 8/1993. It should be noted that a share will be sold only in one of the banks at this time in the event that an offer is received at an acceptable price and negotiations result in a sale. Current plans provide for the sale of a share in the other bank later in the year.

The identity of parties requesting discussions will be made public following the deadline for notification. Requests for anonymity will not be granted.

The final deadline for delivery of notifications is Thursday, July 25, 2002, at 4 p.m. Notices should be delivered to the following address:

The Executive Committee on Privatisation
Ministry of Finance
Arnarhváll
150 Reykjavik