- Shareholders representing 99% of the total share capital responded to the share purchase offer - - Shareholders representing 84% of the total share capital will remain shareholders in unlisted FL Group - Reykjavik, Iceland, 21 May 2008: FL Group, the investment company, announces that FL Group‘s offer of buying shares in FL Group in exchange for shares in Glitnir Bank, in relation to the intended de-listing of the Company, expired today 21 May at 16:00 GMT. Shareholders representing about 99% of the total share capital responded to the share purchase offer. Shareholders representing 16% of the total share capital, approximately 2,400 shareholders, accepted the offer and will sell their shares in FL Group and get paid with shares in Glitnir Bank. Shareholders representing 84% of the total share capital, approximately 1,900 shareholders, will therefore remain shareholders in FL Group following the de-listing. The share purchase offer was put forward following a Shareholders Meeting in FL Group on 9 May 2008 where the Board of Directors‘ proposal to request the de-listing of the Company's shares from OMX Nordic Exchange in Iceland was approved by 99.86% of total votes cast. The Shareholders Meeting also approved the Board of Directors‘ proposal to offer shareholders the option of selling their shares in FL Group and get paid with shares in Glitnir Bank. The rate set for the exchange of FL Group shares into Glitnir shares was based on FL Group share price of 6.68, which was FL Group‘s average shareprice in April 2008, and Glitnir Bank share price of 17.05 which was the closing shareprice on 30 April 2008. The swap rate of the offer was therefore 0.3918 shares in Glitnir Bank for each share in FL Group. Settlement of the offer will be carried out on 29 May 2008 and the results are presented on a provisional basis due to unsettled transactions. 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 or the bank‘s position as one of FL Group‘s core holdings. Jón Ásgeir Jóhannesson, Chairman of FL Group: “The fact that over 2.000 shareholders accepted the share purchase offer confirms the Board´s evaluation that many of our smaller shareholders could see it in their best interest to swap their shares for shares in listed Glitnir bank, rather than keeping their shares in unlisted FL Group. The result also implies that the share purchase offer was perceived fair and reasonable. I would like to emphasize that the share purchase offer was beyond FL Group´s obligation and designed to protect the interest of the smaller shareholders. It is also worth noting that shareholders representing 84% of FL Group´s total share capital have chosen to keep their shares in the unlisted FL Group which confirms their confidence in the company.” Further information: Julius Thorfinnsson Head of Corporate Communications, FL Group Tel: +354 591 4400 julius@flgroup.is About FL Group: FL Group is an 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). For more information visit www.flgroup.is.