FL Group today has announced that the company owns 2.99% of the share capital in Commerzbank AG. This stake is currently valued at approximately EUR 723 million and has been built up in recent weeks. FL Group's evaluation is that Commerzbank represents an exciting investment opportunity in the European banking sector. The decision to invest in the company comes after a thorough analysis of the sector and FL Group believes that the current valuation is attractive and the predicted consolidation in the industry is starting to materialize. Commerzbank is the second largest bank in Germany and one of Europes leading banks. Germany is by far the banks most important market, demonstrated by a nationwide network of some 800 branches, but it has also offices in more than 40 countries outside of Germany. Commerzbank realised a profit of EUR 1,597 million in 2006 which made last year one of the best in its history. Commerzbank has a market capitalization of EUR 24.2 billion. Hannes Smárason, CEO of FL Group said: “The investment in Commerzbank fits our investment strategy where an essential part is investments in the banking and financial services. We feel that the company's valuation in the market does not reflect the turnaround of its operations, neither in Germany nor internationally. FL Group believes that there are opportunities in the sector and is evaluating other investment opportunities.” Enquiries: FL Group Hannes Smárason CEO Tel: +354 591 4400 Kristján Kristjánsson Director Corp. Communication Tel: + 354 591 4400 / 354 899 9352 About FL Group FL Group is an 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 has 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