FL GROUP hf. - Company Announcement

Jon Sigurdsson appointed Chief Executive Officer of FL Group

Reykjavik, Iceland, 4 December, 2007 - FL Group (OMX: FL), the international
investment company, announced today that Hannes Smarason has stepped down from
his role as Chief Executive Officer and Jon Sigurdsson, FL Group's Deputy Chief
Executive Officer since 2006, has been appointed his designated successor.
Smarason will remain a Director of FL Group's Board and one of the leading
shareholders in FL Group. 

The Board also aims to divest 23% of its 43% holding in Geysir Green Energy. FL
Group´s ownership in Geysir after the transaction will be 20.0%. 

Jon Asgeir Johannesson, FL Group's Chairman, said: 

“As part of the restructuring of FL Group's investment portfolio, also
announced today, Hannes Smarason has decided to relinquish his day-to-day role
as Chief Executive Officer and will continue to provide ongoing strategic
guidance from his position of Board Director. 

In light of these changes, we are delighted to name FL Group's Deputy CEO, Jon
Sigurdsson as the new Chief Executive Officer. I am confident that Sigurdsson
will carry on the strong legacy that Smarason has built over the past three
years.  Under his leadership, FL Group has shown significant growth and
delivered outstanding value to our shareholders. We would like to thank Hannes
for his dedication and efforts as CEO and we are delighted that he will
continue to support Sigurdsson and his management team in his role as Board
Director.” 

Hannes Smarason, Board Director of FL Group, said:

“I believe this is an ideal time to step down following the restructuring of FL
Group's portfolio and ownership structure. During my time at FL Group, we have
seen the Company grow from being a small Icelandic firm, to becoming a global
investment company, with over ISK 400 billion in total assets and over 4.000
shareholders. 

I look forward to my continuing involvement in FL Group through my
Directorship. I have every confidence that my former Deputy, Jon Sigurdsson,
will continue to take the business from strength to strength and I look forward
to supporting him and the FL Group management team in my role as  Board
Director.” 

Jon Sigurdsson, newly appointed Chief Executive Officer, said:

“I am extremely excited by the opportunity to continue to expand FL Group's
investment portfolio and financial capacity, as we continue to deliver
shareholder value. FL Group has a strong management team and we are ideally
positioned to build upon the strong foundations that Hannes has developed. ” 

FL Group also announced today, in a separate press release, significant
investments in major property companies. To view this release please visit FL
Group‘s website www.flgroup.is. 

Jon Sigurdsson - bio

Jon Sigurdsson joined FL Group as managing director in September 2005 and was
appointed Deputy CEO in December 2006. Prior to joining FL Group, Jon worked at
Landsbanki Íslands and Kaupthing Bank. He received his B.Sc. in Business
Administration from Reykjavík University. Jon is the Vice Chairman on the Board
of Glitnir bank and Director of the Board at Tryggingamidstodin. 

For further information:

FL Group
Halldor Kristmannsson
Managing Director of Corporate Communications and IR 	
Tel:  (+354) 591 4400 / 669 4476
E-mail: halldor@flgroup.is

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