Milestone ehf. - Financial Statement Release

2007

MILESTONE REPORTS ISK 21.3 BILLION NET PROFIT FOR 2007


RESULTS FOR 2007

●  Net profit amounted to ISK 21.3 billion.

●  Total revenues amounted to ISK 56 billion.

●  Total assets amounted to ISK 392 billion at year end 2007.

●  Annualized return on equity was 48.8%.   

●  Milestone's equity amounted to ISK 69.5 billion on 31 December 2007.

●  The equity ratio of the Group was 18% and the parent company's equity ratio
   was 73%.
●  At the end of the year assets under management within the Group amounted to
   ISK 379 billion. 


HIGHLIGHTS OF Q4 2007

●  Loss in fourth quarter amounted to ISK 5.8 billion.

●  In the fourth quarter Milestone and subsidiaries acquired a 10.2% stake in
   the Nordic investment bank Carnegie, making the Milestone Group the largest
   shareholder in the bank. 

●  Subsequently, Anders Fällman, CEO of Milestone's Swedish subsidiary Invik,
   was appointed Chairman of the Board of Directors of Carnegie. 

●  In December Milestone finalized the acquisition of a 75.9% stake in KIB Bank
   in Macedonia. 


IMPORTANT EVENTS AFTER THE CLOSING DATE

●  Pending FSA approval, the Board of Directors of Milestone has decided to
   transfer all Icelandic assets from Milestone to its wholly owned subsidiary
   Invik. 

●  The asset allocation effectively positions the Group as a Swedish financial
   group with Milestone as the only shareholder and Invik as the parent company
   of all subsidiaries, including eight majority owned financial institutions. 


KARL WERNERSSON, CHAIRMAN
“In spite of challenging market conditions Milestone has stood its ground and
is backed by a number of strong, majority owned subsidiaries in financial
services. We have been affected by the adverse market trends but the basis for
Milestone's operations remains robust. The result of 2007 reaffirms the
resilience of Milestone and demonstrates our determination to further establish
Milestone as a niche player on the Nordic financial market. By moving the
Icelandic operations under the Swedish financial group Invik in 2008, the Group
will be in a better position to take advantage of opportunities arising in the
Nordic financial services market.” 


GUDMUNDUR OLASON, CEO
“Milestone established a strong foothold in the Nordic countries in 2007 with
the acquisition and integration of Invik. Our undivided focus is on growth and
increased profitability within insurance, banking and asset management. We have
built a flexible structure providing sustainable returns through profitable
operations as the annual results for 2007 demonstrate and confirm. Milestone's
operations primarily rest on assets outside of Iceland and therefore it's both
a rational and a pragmatic step for Milestone to make preparations for future
growth that will take place in Sweden and the rest of the Nordic countries.
Under the new structure Milestone will be better positioned to manage and
balance its investments and mitigate the currency exposure of its operations.” 

ABOUT MILESTONE
Milestone is a Nordic financial group comprising majority owned financial
institutions operating within the fields of insurance, banking and asset
management. Milestone is monitored by the Icelandic FSA and eight of its
subsidiaries are regulated by financial supervisory authorities in respective
markets. Milestone's subsidiaries are amongst others the composite insurance
companies Moderna and Sjóvá, the banks Banque Invik and Askar Capital as well
as the asset management company Invik Funds. 

Information on Milestone can be found on:  www.milestone.is

OUTLOOK FOR 2008
Milestone expects investment returns to fluctuate with market trends but the
operating companies of the Group are assumed to generate sustainable income and
healthy profits from operations. Pending FSA approval, the Board of Directors
of Milestone has decided to transfer all Icelandic assets from Milestone to its
wholly owned subsidiary Invik. The asset allocation effectively positions the
Group as a Swedish financial service group with Milestone as the only
shareholder and Invik as the parent company of all subsidiaries, including
eight majority owned financial institutions. 

Several dispositions of private equity investments and real estate investments
are planned in the first half of 2008. Overall, the risk profile of the Group
in regards to currency management and diversification of assets improved
significantly in 2007 and the Group is in a better position to shoulder
possible continuing downward market trends in 2008. Despite unfavorable stock
market conditions Milestone is comfortable with its holdings in Glitnir Bank
and Carnegie and has no intentions to reduce its holdings in the two banks. 

ADDITIONAL INFORMATION
For additional information, visit 
www.milestone.is
www.sjova.is
www.invik.se
www.askar.is
Or contact
Gudmundur Olason, CEO
Tel: (+354) 414 1800

Attachments:

milestone ehf ársreikningur 2007_2.pdf

press release - milestone annual results 2007 (eng) final.pdf