Issuance of stock options The board of directors of SPRON hf. has decided on the basis of the bank's stock option scheme to grant stock options on shares in the bank to its employees. The options come into effect today, 28 December 2007. Options to buy a total of 46,020 thousand shares are granted to a total of 260 employees, i.e. all full-time employees of SPRON and it's subsidiaries. Stock option holders are entitled to exercise one third of their stock option from 20 January to 10 March each year, for the first time in 2009. The option has an exercise price of ISK 10,16 per share which is the weighted average closing price on the OMX Nordic Exchange during the last 15 trading days. (Stock option plan 1). In addition to the above-mentioned stock options, the board has granted 51 employee options to buy a total of 146,850 thousand shares, with the right to exercise one third of the option from 20 January to 10 March each year, for the first time in 2009. The option has an exercise price of ISK 10,16 per share during the first exercise period, ISK 10,67 per share during the second exercise period and ISK 11,20 per share during the third exercise period. Employees may defer the right to exercise the option during the duration of the agreement, but the exercise price for the deferred shares increases to the exercise price which is valid for the period when the option is eventually exercised. (Stock option plan 2). The following stock options are granted to the following primary insiders who are obliged to disclose their transactions. Name of primary insider: Guðmundur Örn Hauksson Insider's relation to the issuer: Chief Executive Officer Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 12,000,000 shares Primary insider's holdings: 56,080,713 shares Related parties' holdings: 516,786 shares Name of primary insider: Ólafur Haraldsson Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 7,500,000 shares Primary insider's holdings: 1,460,802 shares Related parties' holdings: 36,389,976 shares Name of primary insider: Harpa Gunnarsson Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 1,651,762 shares Related parties' holdings: 99,067 shares Name of primary insider: Hörður Helgason Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 1,541,660 shares Related parties' holdings: 0 shares Name of primary insider: Jón Hallur Pétursson Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 4,913,088 shares Related parties' holdings: 0 shares Name of primary insider: Kristján Harðarson Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 135,000 shares Related parties' holdings: 26,647,290 shares Name of primary insider: Ósvaldur Knudsen Insider's relation to the issuer: Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 112,106 shares Related parties' holdings: 0 shares Name of primary insider: Valgeir M. Baldursson Insider's relation to the issuer: Managing Director Nmber of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 1,219,964 shares Related parties' holdings: 0 shares Name of primary insider: Geir Þórðarson Insider's relation to the issuer: Managing Director of subsidiary Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 12,693,185 shares Related parties' holdings: 0 shares Name of primary insider: Kristinn Bjarnason Insider's relation to the issuer: Managing Director of subsidiary Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 0 shares Related parties' holdings: 0 shares Name of primary insider: Páll Árnason Insider's relation to the issuer: Head of Risk Management Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 2,086,010 shares Related parties' holdings: 1,486,010 shares Name of primary insider: Þórir Haraldsson Insider's relation to the issuer: Internal auditor Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 6,000,000 shares Primary insider's holdings: 869,797 shares Related parties' holdings: 254,599 shares Name of primary insider: Ari Bergmann Einarsson Insider's relation to the issuer: Branch Manager Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 3,000,000 shares Primary insider's holdings: 520,152 shares Related parties' holdings: 55,815,333 shares Name of primary insider: Lárus Sigurðsson Insider's relation to the issuer: Branch Manager Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 3,000,000 shares Primary insider's holdings: 0 shares Related parties' holdings: 233,088 shares Name of primary insider: Sigríður Einarsdóttir Insider's relation to the issuer: Branch Manager Nmber of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 3,000,000 shares Primary insider's holdings: 2,310,314 shares Related parties' holdings: 856,973 shares Name of primary insider: Þórný Pétursdóttir Insider's relation to the issuer: Deputy Managing Director Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 3,000,000 shares Primary insider's holdings: 5,496,673 shares Related parties' holdings: 0 shares Name of primary insider: Inga E. Káradóttir Insider's relation to the issuer: Assistant to CEO Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 2,250,000 shares Primary insider's holdings: 297,202 shares Related parties' holdings: 0 shares Name of primary insider: Jóna Ann Pétursdóttir Insider's relation to the issuer: Head of Public Relations Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 2,250,000 shares Primary insider's holdings: 265,900 shares Related parties' holdings: 730,277,716 shares Name of primary insider: Þorvaldur F. Jónsson Insider's relation to the issuer: Key employee Number of shares according to stock option plan 1: 177,000 shares Number of shares according to stock option plan 2: 2,250,000 shares Primary insider's holdings: 3,891,608 shares Related parties' holdings: 41,412,715 shares