Glitnir Bank

NEW YORK, May 12, 2010 - Glitnir Bank announces that it has commenced legal action in the Supreme Court of the State of New York against Jn sgeir Jhannesson, formerly its principal shareholder, Lrus Welding, previously Glitnir's Chief Executive, Thorsteinn Jonsson, its former Chairman, and other former directors, shareholders and third parties associated with Jhannesson, for fraudulently and unlawfully draining more than $2 billion out of the Bank.