Correction on Primary insider's holdings after the transaction. Auðkenni útgefanda/Trade ticker: FL Nafn útgefanda/Issuer: FL Group hf. Dagsetning tilkynningar/Date of announcement: 12.03.2008 Nafn fruminnherja/Name primary insider: BG Capital ehf. / Baugur Group hf. Tengsl fruminnherja við útgefanda/Insider's relation with the issuer: Hluthafi / Shareholder Dagsetning viðskipta/Date of transaction: 12.03.2008 Tímasetning viðskipta/Time of transaction: 09:41 Tegund fjármálagernings/Type of financial instrument: Hlutabréf / Equities Kaup eða sala/Buy or Sell: Sala / Sell Fjöldi hluta/Number of shares: 762.317.607 Verð pr. Hlut/Price per share: 9,5 Fjöldi hluta í eigu fruminnherja eftir viðskipti/Primary insider's holdings after the transaction: 4.192.397.180 Fjöldi hluta sem fruminnherji á kauprétt að/Primary insider's option holdings after the transaction: 0 Fjöldi hluta fjárhagslega tengdra aðila eftir viðskipti/Related parties' holdings after the transaction: 238.285.352 Dagsetning lokauppgjörs*/Date of settlement*: 0 Athugasemdir*/Comments*: Baugur Group hf. is the sole shareholder of BG Capital ehf. Financially related parties holding shares in FL Group are Fjarfestingafelagid Gaumur ehf., Eignarhaldsfelagid ISP ehf., Hagar hf. and 101 Capital ehf. Jon Asgeir Johannesson, Executive Chairman of Baugur Group, is Chairman of the Board of Directors of FL Group. The transfer is for securities purposes only in relation to a financing transaction. BG Capital ehf. hold the voting rights, right for dividend and other rights to the shares. BG Capital ehf. holds the right to 4.954.714.787 shares in FL Group.