The annual interest rate on the two year fixed rate bond will increase by 0.1% to 6.60% gross AER, 0.85% above the Bank of England Base Rate. The rate increase further cements its position as the market leading two year fixed rate offshore bond account. The one year fixed rate bond will increase its interest rate by 0.49% to 6.70% gross AER, 0.95% above the Bank of England Base Rate.

Mark Sismey-Durrant, Director, Landsbanki Guernsey, comments: “We aim to demonstrate our commitment to our customers by maintaining competitive interest rates. This latest rate increase responds to our customers needs and ensures they are earning a great rate of return.”

The accounts are available for deposit amounts from GBP10,000 to GBP2 million, with interest payable annually or at maturity. Those wishing to invest can either contact the Bank for an application pack or download one from the website. As well as the fixed rate bond accounts outlined, Landsbanki Guernsey also offers a full range of offshore variable rate products. Full details can be found online at www.landsbanki.co.gg.

Landsbanki is a growing European bank with total assets of ISK 2,317 billion (EUR 26.4 bn) at 31 March 2007 and a market capitalisation of ISK 383 billion (EUR 4.4 bn) at 3 May 2007. Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol . Landsbanki is rated by Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

Building on its strong foundation in Iceland, Landsbanki has successfully extended its financial operations into new markets, focusing on serving mid-cap corporates in Europe. The bank's unique product line includes access to both debt and equity markets; its research department is among the most comprehensive in Europe, including some 90 analysts covering more than 800 European stocks locally. Landsbanki and its subsidiaries now operate in all major financial centres of Europe, and have North American representation in New York and Halifax. Through its extensive distribution network, Landsbanki has a strong platform to deliver targeted financial services based on local expertise.