FL GROUP hf. - Company Announcement

FL Group divests part of its holdings in AMR

Reykjavik, Iceland, 30 November 2007, FL Group (OMX: FL), the international
investment company, today announced that it has divested 8.0% of its 9.1%
direct and indirect interest in AMR, the parent company of American Airlines. 

FL Group began its investment in AMR stake in 2006 and since then the company
has shown progress on a number of operational fronts, including increased unit
revenues and strengthening of its balance.  However, FL Group believed there
were further opportunities to unlock shareholder value and in September 2007,
sent an open letter to the Board of AMR, urging them to immediately consider
strategic alternatives that would increase shareholder value.  FL Group's
suggestions included improving disclosure and monetizing assets, such as
AAdvantage, AMR's Frequent Flyer program. 

While FL Group's proposal received a positive reception from stakeholders,
AMR's management has not been able to take advantage, and, combined with the
external factors of high fuel costs and a tightening of the U.S. economic
environment, the AMR share price has continued to suffer. The proposed spinoff
American Eagle is a move in the right direction, but the lack of clarity over
timing, terms and valuation has done little to enhance value. 

In the light of this, FL Group has decided to divest the majority of its stake
in AMR and look for other investment alternatives on behalf of its
shareholders. 

Financial impact
At the end of the third quarter, the total direct and indirect holding in AMR
was valued at ISK 31.2 billion, reflecting mark-to-market valuation. The
financial impact of the divestment on fourth quarter earnings is negative of
approximately ISK 2 billion (US$32.5 million). A total of 20 million shares
were divested and FL Group now holds a 1.1% stake in AMR. The divestment
enhances company´s liquidity by ISK 10 billion (US$ 163 million). 


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
Website: www.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 offices in London and Copenhagen, 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