FL GROUP - Directors Dealings


Name of insider	BG Capital ehf.
Relations with the issuer	Shareholder with board reprensentatives
Date of transaction	5.1.2007
Buy or Sell	Kaup / Buy
Type of instrument	Hlutabréf / Equities
Number of shares	528.650.326
Price	27
Primary insider's holdings after the transaction	1.290.967.933
Primary insider's option holdings after the transaction	0
Related parties holdings after the transaction	153.146.912
Date of settlement	 

Comments	
The transaction relates to closure of derivative contract and transfer by Baugur Group hf of its holding in FL Group hf. to a subsidiary, BG Capital ehf. which is 100% owned and controled by Baugur Group hf.  The transaction will not change Baugur Group hf. risk related to the shares of FL Group hf.

Baugur Group's holdings in FL Group are held in a few companies, including BG Capital and Baugur Group. Total number of shares held by Baugur Group are 1,441,934,845 which equals to 18.2% holding.