1H 08 profit before tax ISK 15.4 bn. (EUR 121m) Total recognised earnings in equity ISK 40 bn. (EUR 316m) in 1H 08              Strong liquidity position of EUR 8.1 bn.FINANCIAL HIGHLIGHTS  * Net profit ISK 7.6 bn. up 29,3% from Q1 08  * Record quarter for net operating income, ISK 26.9 bn., a 5%    increase from ISK 25.6 bn. in Q1 08  * Return on equity 17,0% compared 15,0% in Q1 08  * Net Interest income ISK 17.8 bn. growing 28.9% QoQ  * Fees and commissions remain strong at ISK 9.3 bn. despite a    slight drop from Q1 08  * Net operating expenses were ISK 14.8 bn. rising by 7.2% from Q1    08.  * Real growth of the loan portfolio negative by ISK 45 bn. from the    previous quarter  * Liquidity position remains strong at 8.1 bn. euro  * CAD ratio rises to 11.2%. Tier 1 capital ratio stands at 8,0% up    from 7.7% in Q1 08.OPERATIONAL HIGHLIGHTS  * Core earnings have increased by 10% on average each quarter    (CQGR) from Q2 07  * Core profit before tax[1] grew 19.9% QoQ and 25.9% YoY.  * Cost / Income ratio is stable at  55%  * Continued strong performance by Capital Markets, Corporate    Banking and Investment Banking units in the first half of 08  * 40% of advisory fees YTD originated through niche related    activities. Solid pipeline going forward.  * Launch of a new international deposit product, Save&Save, in    Norway and Iceland. This product will be introduced in other    markets in the coming quarters.  * Successful issue of EUR 900m covered bond in Norway during the    quarter

Lárus Welding, Glitnir CEO: "We are very content with the results forthe second quarter, where our core profits have risen by nearly 20%for the second consecutive quarter. As a result of our strategy andthe initiatives we have adopted since Q4 2007, the bank has showngreat resilience in a challenging market environment. We havecontinued to successfully increase our core income and profits whileat the same time focusing on several cost cutting initiatives. Weestimate that these co-ordinated efforts will start to bear realfruit in the second half of the year.

During the first half, we have successfully raised EUR 2.4 bn infunding while paying outstanding maturities of EUR 2.1 bn. At thesame time we have maintained a strong CAD ratio of 11.2% despite asevere weakening of the ISK. We have also been successful indeleveraging our balance sheet. The bank's liquidity position remainsstrong at EUR 8.1 bn.

At the end of the quarter, the bank launched a new internationaldeposit product, Save&Save, in Norway and Iceland which will beexpanded into other markets in due course.

Looking forward, we will continue to focus on our core operationsleveraging on the bank's niche strategy and the positive outlook forthe global food and energy sectors where we have a strong marketpresence.

In our immediate plans we do not expect the wholesale funding marketsto improve in the near future. With our strong asset quality intactwe will continue to manage our balance sheet, further diversifyingour funding sources and deleveraging non-core assets."

Lárus Welding Rósant Már  Bjorn Richard Johansen Sigrún Hjartardóttir              TorfasonCEO           CFO         MD, Corp.              Investor Relations                          Communicationphone: +354   phone: +354 phone: +47 47 800 100  phone: +354 440 4748440 4005      440 4743    or                     or                          brj@glitnir.no         SiHj@glitnir.is

[1] Net profit - other operating income

Glitnir's condensed consolidated interim accounts can be found onwww.glitnirbank.com

Glitnir Condensed Consolidated Interim Account June 2008 --http://hugin.info/133924/R/1239861/265685.pdf

Glitnir Bank Q2 08 results press release --http://hugin.info/133924/R/1239861/265686.pdf

Copyright © Hugin AS 2008. All rights reserved.