- Statement regarding the FSA decision regarding voting rights in Glitnir banki hf.

According to a decision by the Financial Supervisory Authority (FSA) which FL
Group received this afternoon, the FSA considers FL Group, Jötunn Holding ehf.,
Elliðahamar/Elliðatindur and Sund/Sund Holding ehf. to be acting in concert and
concluded that they can only exercise 32,99% of their voting rights at
shareholder meetings in Glitnir banki hf. This means that the voting rights of
the parties above is restricted, since their shareholding amounts to 44,99%. 

The FSA has reached its conclusion on the grounds that these parties are so
closely connected to FL Group that they should be deemed as acting in concert
under the Act on financial undertakings. 

FL Group disagrees with the FSA on the matter, but reserves final judgement
while it analyzes the decision in order to make a detailed assessment of its
content. It has been the view of FL Group that the above mentioned companies
cannot be understood to be acting in concert within the context of the Act on
financial undertakings, but today Jötunn Holding ehf., and FL Group signed a
shareholders' agreement regarding their cooperation in Glitnir banki hf. 

FL Group believes that the decision reached by the FSA does in no way affect
either the position or the operation of Glitnir banki hf. Neither does the
decision change anything in FL Groups standing, the company will remain
committed to Glitnir banki hf. as its leading shareholder and will support the
bank in any way it can. 

FL Group will do its utmost to finalize this matter as soon as possible bearing
in mind the interest of shareholders, customers, staff and indeed the financial
market as whole.