FL GROUP hf. - Company Announcement

Icelandic Financial Supervisory Authority rejects FL Group´s and Jotun Holdings' application for qualified holdings in Glitnir Bank

Icelandic Financial Supervisory Authority rejects FL Group´s and Jotun
Holdings' application for qualified holdings in Glitnir Bank 

-FL Group retains its authorisation to hold up to 33% shares in Glitnir Bank-

- FL Group remains a long-term strategic investor in the Bank-

Reykjavik, Iceland, 13 December, 2007 - FL Group (OMX: FL), the international
investment company today announced that the Icelandic Supervisory Authority
(“FME”) has rejected FL Group´s and Jotun Holdings' application to jointly hold
up to 39.9% shares in Glitnir Bank. On 1 June 2007, the companies applied to
the FME for the authorization to hold up to 39.9% in the Bank. 

FL Group's authorisation to hold up to 33% of the share capital in Glitnir
remains intact and the ruling does not change FL Group´s objective to be a
long-term strategic investor in the Bank. FL Group started investing in Glitnir
in 2005 and has been continuously adding to its stake, which currently stands
at 31.97%. FL Group's involvement in the Board of Glitnir Bank remains
unchanged. 

Jotunn Holding sent a statement to FL Group today, in which it confirms that it
has waived its voting rights in Glitnir and will without any involvement from
FL Group discuss next steps with the FME, including a possible divestment of
part of its holdings in Glitnir. Simultaneously, Jotunn Holding will explore
ways to transfer the Company's share in Glitnir to its shareholders, which will
not affect their waiver of voting rights. Shareholders in Jotun Holding are
Baugur Group, Fons and Coast Capital. Jotunn Holding´s current holding in
Glitnir bank is 6.85%. 

The statement from Jotunn Holding to FL Group is attached to this press
release. 


For further information:

Halldor Kristmannsson
Managing Director of Corporate Communications and IR 	
Tel:  (+354) 591 4400
E-mail: halldor@flgroup.is



About FL Group

FL Group is an international investment company focusing on three areas of
investment, Financial and Insurance (FIG), Private Equity and Capital Markets. 
FIG is a special investment function responsible for strategic investments in
banking, insurance and other financials.  Private Equity oversees FL Group‘s
private equity holdings in addition to some listed positions that fit specific
investment criteria.  The company's Capital Markets function oversees
investments in listed securities as well as derivatives and other alternative
trading for hedging or investment purposes. 
With head office in Reykjavik and an office in London, FL Group invests in
companies worldwide.  The Company is listed on the OMX Nordic Exchange in
Reykjavik, Iceland (OMX: FL), with over 4,000 shareholders. 

More information on www.flgroup.is

Liitteet:

jotun -13 des-07.doc