1 January 2008 to 30 June 2008
 
MP Investment Bank's results for the first
half of 2008

Key results from operations and balance sheet:

•  Profits
during the first six months of the year amounted to ISK 1,525
   million, an
increase of 36.4% compared to the first six months of 2007. 

•  The bank's
earnings before tax in the first half of the year equalled ISK
   1,540
million, rising by 12.6% from the same period last year. 

•  Net interest
income amounts to ISK 762 million in the first six months
   compared to ISK
159 million in the first six months of 2007.
 
•  Interest income increased
by 45.6% in the first six months of the year
   compared to the corresponding
period last year and totalled ISK 3,190
   million. 
 
•  Return on equity
(ROE) in the first six months of the year 2008 equals a
   return of 49.6% on
a yearly basis. 

•  Exchange rate earnings from financial operations
increased by 8.3% between
   periods, at ISK 679 million.
 
•  Net income
from operations rose by 16.5% from the corresponding period last
   year and
amounted to ISK 2,083 million.
 
•  The bank's total assets increased by
29.8% from the start of the year and
   stood at ISK 68,220 million at the end
of June 2008 compared to ISK 52,549
   million on 31 December 2007. 

•  The
bank's liquid assets on 30 June 2008 amounted to ISK 10,742 million.

•  On
30 June 2008, equity equalled ISK 7,502 million, an increase of 21.3% from
  
31 December 2007. 

•  The consolidation's equity (CAD) ratio was 29.6% at
the end of June 2008
   compared to 28.1% at the end of 2007. 

•  Earnings
per share amounted to 1.43 during the first 6 months of the year
   compared
to 1.04 for the corresponding period of last year, which represent
   an
increase of 37.5%. 

•  The number of employees as of 30 June 2008 is 50
compared to 41 at the same
   time last year.


Operations in the first
half of 2008:

MP Investment Bank's operations were very successful in the
first half of the
year, particularly taking into account the difficult
conditions on financial
markets worldwide. Interest rate difference increased
significantly from the
previous year, explained by own trading on the bond
market and a significant
expansion of bond brokerage activities. The above
factors also resulted in a
substantial growth of the bank's balance sheet
since the turn of the year. The
bank's commissions have been somewhat reduced
since 2007 as a result of
decreasing turnover on the domestic stock market,
but at the same time bond
brokerage commissions have risen significantly, and
the income of the bank's
branch in Lithuania has also increased considerably. 
The operations in
Lithuania have been a success so far this year and the bank
has already made a
strong name for itself among investors in the country.


The business of the bank's asset management has been good so far this
year.
Demand for the bank's asset management services for individuals
and
institutional investors has increased significantly following good
management
results and the independence of the service. 

The bank's
exchange rate earnings were healthy during the first part of the
year,
primarily justified by the bank's proprietary bond trading. The bank
adopts a
prudential point of view when evaluating all assets in its portfolio,
listed
or unlisted assets alike. 

The bank considers the loan portfolio to be
solid. Practically every loan is
secured by liquid securities and active risk
management is used to evaluate
individual loans. In the Financial Interim
Statement all loans are evaluated
from a prudential point of view and the bank
has made a general precautionary
provision for losses on the loan portfolio,
equalling around 1.5% of the bank's
loans to customers. 

The bank's funding
has been successful during the year. New funding lines with
domestic and
foreign financial institutions have been arranged and the
Lithuania branch
negotiated its first line in the first half of the year. 

Prospects for the
remaining months of 2008:

There is no end in sight to the difficulties on
financial markets worldwide.
The development of the domestic economic
situation, i.e. high interest rate
policy, inflation, the devaluation of the
Icelandic króna and plunging real
estate prices, has created difficult
operating conditions for domestic
companies. 

Not having a large part of
its assets tied up in long-term loans and shares has
been convenient for the
bank this year. Therefore the bank has managed to shift
its emphases in
accordance with the conditions. In the latter half of the year
focus will be
on growing the branch in Lithuania, where the bank sees great
opportunities.
Bond brokerage and asset management will also be improved
further, with our
independence and professionalism as guiding lights. 

The bank believes that
times like these give rise to great opportunities, in
spite of the difficult
operating conditions on financial markets. A high CAD
equity ratio, healthy
balance of liquid assets and solid operations are a
source of optimism for the
bank. 

For further information contact Styrmir Þór Bragason, CEO of MP
Investment
Bank. Telephone number: +354 540 3200. 

A copy of the bank's
Interim Financial Statements can be accessed on the bank's
web site,
www.mp.is.