direct/ Glitnir (IS) - Glitnir advises and provides finance for acquisition of House of Fraser plc

London/Oslo, 24 August 2006 - Baugur, together with a consortium of investment partners, announces a recommended offer for House of Fraser; Glitnir is acting as Financial Adviser, Underwriter, Mandated Lead Arranger and Bookrunner in the transaction

Baugur Group, through its subsidiary BG Holding, announced today that it, together with a consortium of investment partners, has reached agreement with the Board of House of Fraser on the terms of a recommended cash offer for the Company, the UK´s leading retailer of designer brands. The offer values the shares of House of Fraser at 148p each, representing an Enterprise Value of £453 million. The acquisition is being effected by a Scheme of Arrangement and is subject to requisite Court and House of Fraser shareholder approvals.

Glitnir, the leading Icelandic bank, is acting as Joint Financial Adviser (with Rothschild), and Joint Underwriter, Joint Mandated Lead Arranger and Joint Bookrunner (with Bank of Scotland) on senior, mezzanine (where Glitnir is also agent) and bridging debt facilities.

Steinunn Thordardottir, Head of Glitnir´s London office, said:

"Glitnir is delighted to have assisted Baugur in this landmark deal. Retail is an important market in the UK, and participation in the House of Fraser transaction illustrates Glitnir´s growing market presence and importance in London. This milestone transaction represents further evidence of Glitnir´s ability to structure and provide substantial, complex acquisition finance commitments in conjunction with its highly developed Corporate Finance platform"

For further information, please contact:

Steinunn Thordardottir, Head of Glitnir London, phone +44 (0) 20 7710 9110 e-mail: steinunn.thordardottir@glitnir.co.uk

David Zell, Head of Debt Finance and Loan Syndication, Glitnir, phone +44 (0) 20 7710 9171 e-mail: david.zell@glitnir.co.uk

Tim Owen, Head of Corporate Finance London, Glitnir, phone +44 (0) 20 7710 9130 e-mail: tim.owen@glitnir.co.uk

Bjørn Richard Johansen, International Communication and Public Affairs Director, Glitnir, phone +47 47 800 100, e-mail: brj@glitnir.no

Louise Burns, Burson-Marsteller, phone +44 (0) 20 7300 6138 e-mail: louise.burns@bm.com

About Glitnir
Glitnir is a leading financial group that offers universal banking. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of banks in Luxembourg (Glitnir Bank Luxembourg S.A) and Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, as well as 50.1 percent of Union Gruppen). Glitnir´s subsidiary BNbank in Norway recently entered into an agreement to acquire 45 per cent of the shares in Norsk Privatøkonomi ASA. Norsk Privatøkonomi ASA is an independent financial advisory company with 12 branches in key areas of Norway (governmental approval pending in Norway). Glitnir own the leading Swedish brokerage firm Fischer Partners. The bank has a branch in London and in Copenhagen, Denmark. Glitnir has an office in Halifax, Canada. Glitnir plans to open an office in Shanghai, China in 2006. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced record profits, with a return on equity of 45.5 percent for the first half year of 2006 - making second quarter 2006 the best ever in the bank´s history.

For further information, go to www.glitnirbank.com

http://www.glitnir.is

Glitnir




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