Flaga Group - Proposals for the Annual General Meeting on April 10, 2007


1. Proposals for members of the Board of Directors for the next operating year

Board members:
Bogi Pálsson
Eggert Dagbjartsson
Erlendur Hjaltason
Hákon Sigurhansson
Sveinn Þór Stefánsson

Detailed information on Board members can be found in Company's office at Lækjargata 4, 101 Reykjavík

Alternates:
Ásmundur Tryggvason
Helgi Jóhannesson
	
2. Proposal on Auditor
KPMG endurskoðun hf.,  Símon Á. Gunnarsson and Eyvindur Albertsson on their behalf.
 
3. Proposal on allocation of profits/loss
The Board of Directors proposes that the Company does not pay dividends for the year 2006.
 
4. Proposal on the remuneration of the Board of Directors
It is proposed that remuneration for Board members for the year 2007 will be ISK 600,000 and that remuneration for the Executive Chairman of the Board will be double that amount.