Resolutions from FL Group's shareholder meeting Reykjavik, Iceland, 14 December, 2007 - FL Group (OMX: FL), the international investment company today announced that the proposals submitted at its shareholders meeting today, 14 December were approved unanimously. 1. The Shareholders Meeting resolved to authorize the Board of Directors to increase the share capital by issuing up to ISK 3,659,265,291 new shares of nominal value ISK 1 each to finance the purchase of a Property Portfolio from Baugur Group and affiliates. It was resolved that Paragraph 2 of Article 4 of the Company's Articles of Association will be as follows: „The Board of Directors may increase the share capital of the company by up to ISK 5,675,999,576 of nominal value with sale of new shares as follows: [Items a-c will be unchanged, but new item will be added, item d, that will be as follows:] d. The company's Board of Directors is authorized to increase the company's share capital by issuing up to 3,659,265,291 new shares of nominal value 1 ISK each at the rate 14.7. The shares may only be used to finance a purchase of a Property Portfolio from Baugur Group hf. and affiliates and allotted to Baugur Group hf., in accordance with an agreement as of December 4, 2007. The Board of Directors is authorized to issue the new shares without the peremptory purchase provisions of Article 34 of Act Respecting Public Limited Liability Companies No. 2/1995 and the provisions of Article 4 of the company's Articles of Association being applicable. In accordance with the above the company's Board of Directors decides on the issues stipulated in Article 36 of the Act Respecting Public Limited Liability Companies, i.e. the subscription period and payment method and from which time the new shares are granted rights in the company. In accordance with the above it shall be permitted to pay for the shares by the means of other valuables than cash.“ 2. The Shareholders Meeting resolved to change the Address of the Company. It was resolved that Article 2 of the Articles of Association will be as follows: ”The address of the company is Sidumuli 24, 108 Reykjavík.” 3. The Shareholders Meeting resolved to change the Object of the Company. It was resolved that Article 3 of the Articles of Association will be as follows: "The purpose of the company is to act as an investment company, that is to earn interest on money that shareholders have tied to activities in the operation of the company, investments, including those in subsidiaries and associated companies." 4. Election of Board of Directors. The following persons will be members of the Board of Directors until next Annual General Meeting: Board Members: Gunnar Sigurðsson, ID no 091169-3559 Hannes Smárason, ID no 251167-3389 Jón Ásgeir Jóhannesson, ID no 270168-4509 Kristín Edwald, ID no 150471-5329 Pálmi Haraldsson, ID no 220160-3789 Þórður Már Jóhannesson, ID no 080773-5529 Þorsteinn M. Jónsson, ID no 180263-3309 Alternates: Peter Mollerup, ID no 220173-2759 Smari S. Sigurdsson, ID no 030847-3349 Further information: Halldór Kristmannsson Managing Director of Corporate Communications, FL Group Telephone: +354 591 4400 E-mail: halldor@flgroup.is About FL Group FL Group is an international investment company focusing on three areas of investment, Financial and Insurance (FIG), Private Equity and Capital Markets. FIG is a special investment function responsible for strategic investments in banking, insurance and other financials. Private Equity oversees FL Group‘s private equity holdings in addition to some listed positions that fit specific investment criteria. The company's Capital Markets function oversees investments in listed securities as well as derivatives and other alternative trading for hedging or investment purposes. With head office in Reykjavik and an office in London, FL Group invests in companies worldwide. The Company is listed on the OMX Nordic Exchange in Iceland (OMX: FL), with over 4,000 shareholders. More information on www.flgroup.is