At the meeting of the Board of Directors of FL Group hf. on October 14,2007 the Board of Directors decided, in line with the authorization in the Articles of Association, to issue 326,069,513 new shares, at nominal value 1 ISK each at the rate of 24.3 to finance the purchase of shares in Tryggingamidstodin hf. For further: Halldor Kristmannsson Managing Director Tel: (+354) 591 4400