Notification on an agreement on the exercise of sharholding in Glitnir banki hf.

FL GROUP hf. and subsidiaries (FL Group) and Jötunn Holding ehf. have signed a
shareholder agreement stipulating the cooperation that the companies intend to
have regarding the exercise of shareholding in Glitnir banki hf.  According to
the agreement the companies will cooperate on the election of board members at
shareholders meetings in Glitnir banki hf.  The aim of the parties is to ensure
a clear and firm policy of continuing build up and growth of Glitnir banki hf.,
to the benefit of the company, its customers and shareholders.  The companies
will agree upon which individuals they will endorse to take a seat in the Board
of Directors of Glitnir banki hf., and exercise their voting in the same way in
elections to the Board of Directors at shareholders meetings in the company. 
Otherwise the companies are uncommitted to each other on the exercise of their
shareholding in Glitnir banki hf.  According to the agreement the companies are
free to reduce or increase their shareholding in Glitnir banki hf., but the
combined shareholding cannot exceed 39.9% according to the agreement. 

In its letters dated 25 April 2007, the Financial Supervisory Authority
notified those concerned that it was reviewing whether a new qualifying holding
had been established in Glitnir banki.  The Financial Supervisory Authority
pointed out in its letters that FL Group and Jötunn Holding ehf. were possibly
related parties according to law on financial undertakings.  Due to these views
put forward by the Financial Supervisory Authority the parties concerned
consider it vital to terminate any uncertainty in this regard and inform the
shareholders of Glitnir banki hf., financial markets analysists, public bodies
and the financial market in general, that FL Group and  Jötunn Holding ehf.
have embarked upon the said cooperation from this day forward. 

FL Group is now approved to exercise up to 33% qualifying holding in Glitnir
banki hf.  Thus, and with a reference to the aforementioned agreement FL Group
and Jötunn Holding ehf. will apply for an approval of the Financial Supervisory
Authority to exercise up to 39.9% qualifying holding in Glitnir banki hf. 
Today FL Group has 31.97% shareholding in Glitnir banki hf. and Jötunn Holding
ehf. has 6.85% shareholding.  While the Financial Supervisory Authority is
processing the application the parties anticipate that Jötunn Holding will not
enjoy voting rights in Glitnir banki hf. 

West Coast Capital, which is majority owned by Sir Tom Hunter has 60%
shareholding in Jötunn Holding ehf., Baugur Group hf. has 30% shareholding and
Fons eignarhaldsfélag ehf. has 10% shareholding.  Stefán H. Hilmarsson is the
CEO of Jötunn Holding ehf. 

Further information:

FL GROUP 
Kristján Kristjánsson
Tel:+354 591 4427

Jötunn Holding
Stefán H. Hilmarsson
Tel: +354 530 7800