- FL Group's Board believes de-listing will help unlock the long-term potential in FL Group - Shareholders offered shares in Glitnir Bank as an alternative to keeping shares in the private company Reykjavik, Iceland 1 May 2008: The Board of Directors of FL Group (“FL” or “the Company”) has unanimously approved a motion to call an Extraordinary General Meeting on 9 May 2008 in order to put to vote the Board's recommendation to proceed with the application for the de-listing of the Company's shares from the OMX Nordic Exchange in Iceland (“OMX”). If the motion for de-listing is approved at the Extraordinary General Meeting, shareholders will be offered to keep their shares in unlisted FL Group or sell their shares in FL Group in exchange for shares in Glitnir Bank. In total, 83% of FL Group's shareholders have already waived their right to sell shares and will keep their shares in unlisted FL Group. The Board of Directors of FL Group believes that the de-listing from the OMX is in the best interests of the Company and its shareholders as it will allow the management team to take a long-term view and avoid the pressure of pursuing short-term objectives sometimes demanded by the market. De-listing is consistent with FL's recent restructuring which refocused the Group's portfolio on more stable assets with long-term growth potential, as well as on Private Equity investments. De-listing will also allow FL Group's management more freedom and flexibility in pursuing its chosen strategy and avoid the costs and time constraints associated with being a public company. De-listing process The vote of two thirds of FL's shareholders is required at the Extraordinary General Meeting in order to proceed with the application for the de-listing. Once the motion for the de-listing is approved by the Extraordinary General Meeting, FL Group will offer shareholders to keep their shares in unlisted FL Group or sell their shares in FL Group and get paid with shares in Glitnir Bank. FL Group's key shareholders with a collective holding of 83% of the Company's shares have waived their right to sell their shares and will continue being shareholders in FL Group after the company has been delisted. The offer price for FL Group shares will be 6.68 per share which is the average share price of FL Group shares in April 2008. The offer price for Glitnir shares will be 17.05 which is the closing price of Glitnir shares on 30 April 2008. The swap ratio is therefore 0.3918 shares in Glitnir Bank for each share in FL Group. FL Group has made arrangements with Jotunn Holding ehf which will provide the Glitnir Bank shares used in the share trade. The transaction will therefore have no effect on FL Group's 31.97% holding in Glitnir Bank. The swap offer will be valid from 9 May to 21 May 2008 at 4.00 PM for shareholders registered in the company's registry at close of business on 8 May and the de-listing process is expected to be completed a few weeks after that. Emphasis will be placed on completing the de-listing process as soon as possible. Glitnir Bank supervises the share swap and shareholders can obtain further information and assistance from 9 May on Glitnir Bank's website www.glitnir.is and by phone through +354 440 3725. Jon Asgeir Johannesson, Chairman of FL Group's Board of Directors, commented: “De-listing will allow FL Group to focus on long-term goals and avoid the short-termism that the public markets sometimes impose. The fact that 83% of our shareholders have already chosen to keep their shares in the unlisted FL Group confirms their confidence in the future of the Group, our management team and strategy. For those shareholders who prefer to hold shares in a publicly traded company, we are delighted to offer them a chance to invest in Glitnir Bank, one of our main investments.“ Jon Sigurdsson, CEO of FL Group, commented: “Since late 2007, we have made steady progress in restructuring and stabilising FL Group. As we continue to restructure our business and support our core investments in banking, insurance and property, along with a number of PE projects, we believe that being private will present us with increased flexibility and more opportunities.” For more information please contact: FL Group Julius Thorfinnsson Head of Corporate Communications Tel: +354 591 4400 julius@flgroup.is Brunswick Anita Scott/Elena Shalneva/Leonora Pou/James Stranko Tel: + 44 (0) 207 404 5959 flgroup@brunswickgroup.com About FL Group: FL Group is an international investment company with core investments in banking, insurance and property, along with a number of private equity investments. FL Group's core investments include Glitnir bank (32% stake), Tryggingamidstodin (99% stake) and Landic Property (39.8% stake) The Company's headquarters are in Reykjavik and it also has an office in London. FL Group is listed on the Nasdaq OMX Nordic Exchange in Reykjavik and there are over 4,300 shareholders in the Company. For more information visit www.flgroup.is.