Press Release

22 May 2009

CREDITORS REJECT ICELANDIC BANK COMPROMISE PROMOTED BY GOVERNMENT

It became clear today that following a meeting of creditors of Kaupthing Singer & Friedlander Isle of Man on the Isle of Man on Tuesday and the counting of votes, creditors have rejected a proposed Scheme of Arrangement which had been promoted by the Isle of Man Government.

David Greene, the lawyer at Edwin Coe acting on behalf of the creditors of collapsed bank, Singer & Friedlander Isle of Man, and the organiser of the ‘No’ vote, said, “Creditors have expressed their anger at the Isle of Man Government in this vote. The Government and the island bank regulator must bear its responsibility for the collapse of the Bank and the extraordinary loss of a large part of the Bank’s assets in London. Savers have every right to expect it to put its hand in its pocket to make good some of these losses but the Government has been unwilling to accept its obligations to those that have lost. For many the loss has resulted in severe hardship with the loss of savings and pensions. It is a sad day that saw the Isle of Man Government allow this to happen”

Subject to any further action the case will go back to court next Wednesday (27 May) and unless any further action is taken the Bank will go into liquidation. This will be the first and perhaps only Bank to go into liquidation as a result of the Icelandic collapse.

Full details of the SOA and the response and recommendations of the Depositors’ Action Group can be found on their website: http://www.ksfiomdepositors.org

ENDS

Edwin Coe is the leading firm of lawyers in representing groups and classes in litigation; it acted for the shareholders in Railtrack, Northern Rock and Langbar; it represents investors in Madoff, Lehmann Brothers and AIG

For further information, please contact:

David Greene
t: +44 (0)20 7691 4000/07768 301221
e:

Edwin Coe LLP was founded in 1913 and is ranked as a 'UK 200' law firm. The firm provides a full range of commercial legal services to a diverse UK and international client base. Clients include public and private companies, multinationals, sovereign states, charities and unincorporated associations, and a significant number of private clients.

Edwin Coe LLP, 2 Stone Buildings, Lincoln's Inn, London WC2A 3TH Tel: 020 7691 4000 www.edwincoe.com