- Redemption and the intended delisting of shares in Mosaic Fashions hf.

Tessera Holding ehf. and the board of directors of Mosaic Fashions hf. have
decided that shareholders in Mosaic Fashions hf. which are not members of the
consortium that made the bid for the company on 9 July 2007 shall undergo
redemption of their shares to Tessera Holding ehf. in accordance with paragraph
1 of article 47 of Act no. 33/2003 on securities transactions. 

The board of directors of Mosaic Fashions hf. has also decided to request for
the delisting of the company's shares from the OMX Nordic Exchange Iceland.
Delisting will be requested when the redemption period expires. 

At the end of trading on 16 August 2007, Tessera Holding ehf. and the members
of the consortium owned a combined total of 2,895,908,978 shares in Mosaic
Fashions hf. or the equivalent of 99.8% of the company's issued share capital. 

The redemption price is ISK 17.5 for each share which is the same price Tessera
Holding ehf. offered in the bid. 

In the coming days a notification of the redemption along with a redemption
form will be sent to shareholders that own shares subject to the redemption.
The proceeds from shares in Mosaic Fashions hf. subject to the redemption will
be paid to shareholders no later than 5 weeks after the announcement is made. 

The notification and the redemption form can be obtained from Kaupthing Bank
hf., Borgartun 19, 105 Reykjavik. 

For further information, please contact Jessica Wilks, Investor Relations
Manager, on +44 207 452 1122.