- 1Q Results 2007


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

Attachments

fl group - press release q1 2007.pdf fl group -  frettatilkynning q1 2007.pdf fl group - consolidated interim financial statements q1 2007.pdf