FL Group today announced it has signed a EUR 330 million equity finance facility for its shareholding in Glitnir bank. The financing was provided by Morgan Stanley and has a 3 year maturity. This finance facility demonstrates FL Group's long term commitment to its investment in Glitnir bank and with it FL Group has secured long term financing for its entire stake in the bank, which is FL Group's largest shareholding The facility also confirms the strong relationship that FL Group has established with a large number of influential institutions in the international financial markets. Hannes Smárason, CEO of FL Group: "This transaction is an important addition to our capital structure and increases both the liquidity of FL Group and the geographical diversification in our debt portfolio. FL Group has taken great pleasure in working with Morgan Stanley on the transaction and is very pleased with the result. This transaction also further underpins FL Group's long term belief in Glitnir Bank as a quality investment.” For further information, please contact: Sveinbjörn Indriðason CFO of FL Group Tel.: +354 591 4400 Kristján Kristjánsson Director Corporate Communication Tel.: +354 591 4427 Notes to Editors 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 Gnúpur fjárfestingafélag hf. (20.2%), Oddaflug BV (19.8%), owned by Hannes Smárason, CEO; Baugur Group (19.4%) and 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