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.