FL GROUP hf. - Company Announcement

FL Group is rebranded as Stodir and acquires 39% stake in Baugur Group

•   Stodir´s equity increased by ISK 25 billion
•   Rebranding reflects the creation of a new and strengthened holding company


Reykjavik, 4 July 2008:  FL Group today announces the acquisition of a 39%
stake in Baugur Group under the new name, Stodir, holding company.  With the
transaction, Stodir´s  equity will increase by ISK 25 billion. 

Acquisition of a 39% stake in Baugur Group

Stodir has acquired a 39% stake in Baugur Group. The seller is Styrkur Invest
which is majority owned by Gaumur. The transaction was conducted by means of a
share swap and issuance of new shares in Stodir. The completion of this
transaction is subject to due diligence and shareholder approval at Stodir's
shareholder meeting, scheduled to be held later this month. Among other
shareholders of Baugur are Kevin Stanford, Don McCarthy and Baugur's employees.
Stodir´s largest shareholder is Styrkur Invest. 

Prior to this transaction, Baugur has divested all its assets in Iceland and
will now solely focus on retail investments in the UK, Scandinavia and the US. 
Baugur's core operations will be managed out of London. Baugur's largest retail
investments include Iceland, House of Fraser, Mosaic Fashions, Hamley's,
Whistles, Goldsmiths, Magasin du Nord, Illum and Saks. 

As part of the transaction, Stodir's equity will increase by ISK 25 billion. 
Further financial information about Stodir will be provided when Stodir
presents second quarter results on 29 August. 

Rebranding

FL Group, the investment company will now become Stodir, a holding company. FL
Group was originally the parent company of a number of aviation and
travel-related companies.  For many years, FL Group's largest asset was
Icelandair, which was sold in 2006. The name FL Group was originally a
reference to Icelandair's previous name, Flugleidir.  FL Group has gone through
considerable changes over the past few months with the Company's operations
being restructured and the investment strategy redefined. The name “FL Group”
therefore no longer reflects the nature of the Company's operations and
investments.  The name “Stodir”, which means “support” or “backbone” in
Icelandic, more accurately defines the present main business agenda of the
Company, which is to be a leading shareholder, supporting and strengthening its
core assets. The name change is subject to shareholder approval at the
Company's shareholder meeting, scheduled to be held later this month. 

Jon Sigurdsson, CEO of Stodir:

“The Baugur transaction is an important step in streamlining the focus of our
business to create a powerful new holding company with a strong and diversified
portfolio of international investments. Baugur has established a strong
position in many well-known retail brands and we have great faith in the future
of the company. 

Changing the FL Group's name to Stodir represents a defining moment in our
development as the name reflects the true nature of our strategy which is to
support our core assets; Glitnir in banking, TM in insurance, Landic Property
in propery and now, Baugur in retail. We believe that the rebranding and the
transaction announced today are a major step forward for the company and makes
us strategically well placed for the future.” 

Further information:

Julius Thorfinnsson				Anita Scott/ Leonora Pou
Head of Corporate Communication 		Brunswick Group
Telephone: +354 591 4400			Telephone: +44 207 404 5959
E-mail: julius@stodir.is				Email: stodir@brunswickgroup.com




Notes to Editors

About Stodir:

Stodir hf. is an Icelandic holding company with a diversified portfolio
including a 32% stake in Glitnir bank, 99% stake in Tryggingamidstodin, 39.8%
stake in Landic Property and a 39% stake in Baugur.  Stodir's headquarters are
based in Reykjavik, Iceland and the Company has an office in London. Styrkur
Invest is the largest shareholder, with a 39% stake. Further information can be
found at Stodir's website, www.stodir.is. 

Attachment:
Attached is Stodir's logo.

Attachments:

stodir logo.jpg