Correction: Attachements nr. 1 and 2 was published by mistake in further announcement. After tax profit of ISK 15.1 billion (EUR 172 million) 158% increase compared to first quarter 2006 Key financial highlights -Profit after tax increases by 158% to ISK 15.1 billion (EUR 172 million) compared to first quarter 2006 -Total assets increases by ISK 40 billion during the first quarter and were ISK 302.8 billion (EUR 3,44 billion) at the end of March 2007 -Minimal change in shareholders equity from year end 2006 despite a ISK 15 billion dividend payment -Return on equity in the quarter was 42.4% on annual basis -Financial position strong with equity ratio of 47% Key investment and operating highlights -Stake in Glitnir increased to 31.97% -Stakebuilding in Commerzbank - current shareholding 2.99% -Stake in AMR Corporation increased to 8.53% -Refresco closed three acquisitions in first quarter increasing run rate revenue to over EUR 1 billion -Sale of all shares in Kynnisferðir - net profit from the sale amounted to ISK 486 million -Capital Markets Desk created Commenting on the results, Hannes Smárason, CEO of FL Group, said: “We are delighted with a successful first quarter and a great increase in profit after tax from the previous year. This shows continued strong growth with significant liquidity and investment power across our focused investment business, following the sale of Icelandair and Sterling Airlines at the end of 2006.” “We are confident that our robust business model means we are now even better placed to capitalise on opportunities going forward. “ Enquiries: FL Group Hannes Smárason CEO Tel: +354 591 4400 Kristján Kristjánsson Director Corporate Communications Tel: +354 591 4427 / +354 899 9352 Sveinbjörn Indriðason CFO Tel: +354 591 4400 UK / Brunswick Group LLP Anita Scott, Hanna Gustafsson Tel: +44 (0) 20 7404 5959 Denmark / Jöp, Ove & Myrthu A/S Lars Jörgensen Tel: +45 29 78 49 32 / +45 39 27 50 50 About FL Group FL Group is a unique international investment company, focusing its activities on two areas of investments. The company's Private Equity and Strategic Investments focus on investments in public and private companies and have a long term view. The company's Capital Markets unit oversees the company's short term trading as well as derivative and security trading related to the company's asset portfolio. With its head office in Reykjavik and offices in Copenhagen and London, FL Group invests in companies in Northern Europe, focusing primarily on the Nordics and the UK but also has investments elsewhere. FL Group is listed on the OMX Nordic Exchange in Reykjavik (OMX: FL). At the end of first quarter 2007 FL Group's total assets amounted to ISK 303 billion (EUR 3.4 billion). Its market capitalisation at the end of March 2007 was ISK 236 billion (EUR 2.7 billion). The largest shareholders of FL Group are Oddaflug BV (19.8%), owned by Hannes Smárason, CEO; Baugur Group (18.2%), Gnúpur fjárfestingafélag hf. (17.2%), Icon and Materia Invest (10.7%). The shareholding can in some cases be in the name of Icelandic financial institutions because of forward contracts. More information on www.flgroup.is