FL GROUP hf. - Company Announcement

Results of FL Group's share purchase offer to shareholders

- Shareholders representing 99% of the total share capital responded to the
share purchase offer - 
- Shareholders representing 84% of the total share capital will remain
shareholders in unlisted FL Group - 

Reykjavik, Iceland, 21 May 2008:  FL Group, the investment company, announces
that FL Group‘s offer of buying shares in FL Group in exchange for shares in
Glitnir Bank, in relation to the intended de-listing of the Company, expired
today 21 May at 16:00 GMT. Shareholders representing about 99% of the total
share capital responded to the share purchase offer.  Shareholders representing
16% of the total share capital, approximately 2,400 shareholders, accepted the
offer and will sell their shares in FL Group and get paid with shares in
Glitnir Bank.  Shareholders representing 84% of the total share capital,
approximately 1,900 shareholders, will therefore remain shareholders in FL
Group following the de-listing. 

The share purchase offer was put forward following a Shareholders Meeting in FL
Group on 9 May 2008 where the Board of Directors‘ proposal to request the
de-listing of the Company's shares from OMX Nordic Exchange in Iceland was
approved by 99.86% of total votes cast.  The Shareholders Meeting also approved
the Board of Directors‘ proposal to offer shareholders the option of selling
their shares in FL Group and get paid with shares in Glitnir Bank.  The rate
set for the exchange of FL Group shares into Glitnir shares was based on FL
Group share price of 6.68, which was FL Group‘s average shareprice in April
2008, and Glitnir Bank share price of 17.05 which was the closing shareprice on
30 April 2008.  The swap rate of the offer was therefore 0.3918 shares in
Glitnir Bank for each share in FL Group.  Settlement of the offer will be
carried out on 29 May 2008 and the results are presented on a provisional basis
due to unsettled transactions. 

FL Group has made arrangements with Jotunn Holding ehf which will provide the
Glitnir Bank shares used in the share trade. The transaction will therefore
have no effect on FL Group's 31.97% holding in Glitnir Bank or the bank‘s
position as one of FL Group‘s core holdings. 
Jón Ásgeir Jóhannesson, Chairman of FL Group:
“The fact that over 2.000 shareholders accepted the share purchase offer
confirms the Board´s evaluation that many of our smaller shareholders could see
it in their best interest to swap their shares for shares in listed Glitnir
bank, rather than keeping their shares in unlisted FL Group. The result also
implies that the share purchase offer was perceived fair and reasonable. I
would like to emphasize that the share purchase offer was beyond FL Group´s
obligation and designed to protect the interest of the smaller shareholders. It
is also worth noting that shareholders representing 84% of FL Group´s total
share capital have chosen to keep their shares in the unlisted FL Group which
confirms their confidence in the company.” 

Further information:
Julius Thorfinnsson
Head of Corporate Communications, FL Group
Tel: +354 591 4400
julius@flgroup.is

About FL Group:
FL Group is an investment company with core investments in banking, insurance
and property, along with a number of private equity investments. FL Group's
core investments include Glitnir bank (32% stake), Tryggingamidstodin (99%
stake) and Landic Property (39.8% stake). 
For more information visit www.flgroup.is.