Fly Play hf.

Investor Presentation • May 8, 2008

Disclaimer

Any statement contained in this presentation that refers to FL Group's estimated or anticipated future results or future activities are forward-looking statements which reflect the Company's current analysis of existing trends, information and plans. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors. FL Group does not undertake the obligation to update or alter these forward-looking statements beyond its duties as an issuer of listed securities on the OMX Nordic Exchange in Reykjavik, Iceland.

F

• Key highlights $\gg$
• Financials $\gg$
• Investment overview $\rightarrow$
• De-listing from OMX Nordic Exchange $\gg$
• Summary / Q&A $\gg$

KEY HIGHLIGHTS

• » Continued difficult market conditions during first quarter 2008
• » Execution of new strategy on track with non-core assets being divested
• » Continued decrease of market exposure
• » Plans of reducing operating expenses are progressing well
• » Good liquidity and strong capital base
• » Key focus on supporting core assets

FINANCIALS

» Financial statements are prepared in accordance with IFRS (IAS 34) as adopted by the EU, and reviewed by KPMG

» Key considerations

• » Listed holdings are valued at market value
• » Unlisted assets are reported on fair market value in accordance with IFRS
• » TM, acquired in 3Q is fully consolidated as of 1 October 2007 which decreases comparability from previous year

Income statement (ISK million)	1Q08	1Q07
Net income from securities and derivatives	$-22,935$	12,472
Interest income	2,583	1,498
Interest expenses	$-7,338$	$-3,017$
Net foreign exchange gain	-18,965	4,627
Net investment income	$-46,655$	15,580
Insurance premium	3,176
Insurance claims	$-3,327$
	-46,806	15,580
Operating expenses	1,461	884
Profit before income tax	-48,267	14,696
Income tax	452	388
Profit (loss) for the period	$-47,815$	15,084

• » Consolidation of TM from 1 October 2007 decreases comparability between years
• » Net income from securities and derivatives is negative by ISK 23 billion due to a significant decrease in market value of listed holdings
• » Fair value adjustments of listed and unlisted holdings
• » Interest expenses on forward contracts
• » Currency gain / loss through forward contracts
• » ISK 19 billion currency loss because of fx items on balance sheet
• » Interest expenses increase in line with larger balance sheet and increased funding cost
• » Operating expenses include ISK 588 million from investment operations and ISK 873 million from TM

• » TM's loss for the period amounts to ISK 3.3 billion in 1Q 2008, mainly explained by the performance of TM's investment operations

• » Operating expenses in investment operations decrease by 33.5% from previous year and 73.4% from previous quarter

• » Non cash expenses such as stock options and depreciation amount to ISK 198 million
• » Operations have been restructured. Current number of employees 26, compared to 41 five months ago
• » Objectives set last year to decrease operating expenses in 2008 by 50%, compared to 2007, are on track

Operating expenses (ISK million)	1Q08	1Q07	YoY%
Investment operations	588	884	$-33.5%$
Insurance operations	872	na	na
Total	1,461
Operating expenses (ISK million)	1Q08	4Q07	QoQ %
Investment operations	588	2,213	$-73.4%$
Insurance operations	872	841	3.7%
Total	1.461	3.054	$-52.2\%$

Assets (ISK million)	31/03	31/12	Change
Cash and cash equivalents	18,941	21,125	$-10.3%$
Unpaid share capital	Ω	7,500	nm
Equity investments	177,291	218,998	$-19.0%$
Bond and debt investments	18,697	16,021	16.7%
Derivatives	6,450	6,604	$-2.3%$
Restricted cash	25,960	53,060	$-51.1%$
Assets classified as held for sale	19,864	O	nm
Loans and receivables	69,195	42,348	63.4%
Reinsurance assets	19,826	13,937	42.3%
Deferred tax asset	9,020	8,623	4.6%
Operating assets	2,290	2,167	5.7%
Intangible assets	33,855	31,937	6.0%
Total assets	401,389	422,320	$-5.0\%$

• » Strong cash position maintained
• » Equity investments decreased due to sale of assets and devaluation
• » Restricted cash used to reduce borrowings
• » Eik, the property company, is classified as held for sale in the 1Q accounts
• » Loans and receivables increased during the period mainly due to sale of property funds to Landic Property
• » Reinsurance assets increase due to seasonal and currency effects

Equity and liabilities (ISK million)	31/03	31/12	Change
Total equity	115,181	155,844	$-26.1\%$
Derivatives	13,835	13,488	2.6%
Short positions	4,914	3,350	46.7%
Trade and other payables	20,575	14,469	42.2%
Liabilities classified as held for sale	17,043	Ω	nm
Insurance liability	40,148	29,626	$35.5\%$
Borrowings	189,023	204,979	$-7.8%$
Income tax liability	670	564	18.8%
Total equity and liabilities	401,389	422,320	$-5.0%$

• » Total equity decreased by ISK 40.6 billion
• » Loss of ISK 47.8 billion
• » Translation difference of ISK 7.1 billion
• » Consolidated equity ratio of Group is 29% and 33% in investment operations
• » Liabilities classified as held for sale is due to the incorporation of Eik, the property company, in the 1Q accounts
• » Insurance liability increased due to seasonal and currency effects
• » Borrowings decreased by net ISK 16 billion
• » Liabilities increse due to currency effect by ISK 29 billion during 1Q

Maturity profile

• » Current need for refinancing in 2008, which amounts to ISK 7 billion, is well covered with current liquidity
• » Further focus to be placed on lengthening the maturity profile with refinancing and further sale of assets

F

INVESTMENT OVERVIEW

• Strategic divestment of shares and reduction of market exposure $\gg$
• Commerzbank for ISK 40.2 bn $\rightarrow$
• Finnair for ISK 13.6 bn $\rightarrow$
• Aktiv Kapital for ISK 6.3 bn $\,>$
• Holdings in property funds to Landic Property for ISK 20.6 bn $\gg$
• Geysir Green Energy for ISK 10.5 bn $\rightarrow$
• Successful refinancing of Refresco $\gg$
• Investment in Glacier Renewable Energy Fund for ISK 4.5 bn $\gg$

Glitnir, key financials (ISK million)	1Q08	1Q07	$%$ chg
Net interest income	13,793	7,943	74%
Net fees and commissions	10,604	7,298	45%
Net operating income	25,624	18,213	41%
Profit after tax	5,859	7,008	$-16%$
Total assets		3,864,876 2,255,896	71%
Total equity	188,690	153,411	23%
ROE	15.0%	20.5%
CAD ratio	11.0%	14.2%

Key financial highlights

• » Strong growth in Net interest income
• » Second best quarter ever for fees & commissions
• » Profit after tax of ISK 5.9 bn, equalling ROE of 15%. Satisfying during current environment
• » Total recognised income ISK 28.4 bn for the quarter as ISK 22.5 bn recognised directly in equity

Key operational highlights

• » Glitnir has shown its strength delivering strong core profit figures in current environment
• » Glitnir has realigned its European operation, closing down its branch in Copenhagen and scaling down its operation in Luxembourg
• » Immediately available funds of EUR 8.7 bn, more than enough to cover all maturing debt in remainder of 2008 and 2009
• » Issuance of convertible bond during Q1, to strengthen the capital ratios of the bank
• » Outlook:
• » Outlook for solid results in the coming quarters
• » Strong momentum in core income
• » Cost-income ratio expected to come down

TM | 1Q08

TM, key financials (ISK million)	1Q08	1Q07	$%$ chg
Net insurance premium revenue	3,176	2,378	34%
Financial income	$-2,141$	1,894	$-213%$
Net insurance claims	$-3,327$	$-2,362$	41%
Profit after tax	$-3,271$	886	$-469%$
Total assets	75,858	73,812	3%
Total equity	23,748	21,277	12%
ROE		16.3%
Combined ratio	127.3%	118.5%

Key financial highlights

• » Strong growth in net insurance premium revenue
• » High claims frequency resulting in unusually high claims ratio
• » Cost ratio higher YoY due to higher sales cost and changed reinsurance structure
• » Combined ratio 127% which is far above acceptable level
• » Loss on financial assets explaining majority of the loss in 1008. Challenging equity markets as Icelandic market down 20% and the Norwegian down 15%

Geographical highlights

• $\triangleright$ Icelandic operation:
• » Difficult quarter because of high claims frequency. Voluntary motor insurance and property insurance with high claims ratio
• » Big improvement in result from seamen's accident insurance
• » Operating expenses below budget
• » Outlook for improved results in 2Q

$\gg$ Norwegian operation:

• » Strong growth in net insurance premiums
• » High claims frequency in Marine resulting in high claims ratio
• » High cost ratio due to higher sales cost and lower commissions because of changed reinsurance structure
• » Outlook for improved results in 2Q

Key financials (ISK million)	2006	2007
Revenues	6,191	16,588
Gross profit	21,610	18,070
Operating profit	20,853	15,842
Profit after tax	11,395	2,524
Total assets	156,634	452,075
Investment properties	144,719	341,527
Cash and cash equivalents	453	11,065

Key financial highlights

• » Profit in 2007 amounted to ISK 2.5 billion compared to ISK 11.4 billion in the previous year
• » Keops consolidated in the Group's accounts as of 3 September 2007
• Total assets amount to around ISK 452 billion or EUR $\gg$ 5 billion

Highlights

• » Landic is one of the largest real estate companies in Scandinavia
• » Operations comprised of seven business units: Sweden, Denmark, Iceland, Finland, Keops Investments, Property Funds and Keops Developments
• » Well diversified asset portfolio in key locations in the Nordic countries
• » Integration with Keops has gone well and entities comprising Landic are now fully working as one
• » Main focus of 2008 has been on preserving liquidity and refinancing maturing debt

Other notable highlights

• » A successful refinancing of Refresco completed
• » The deal received unanimous approval from the existing Refresco debt syndicate
• » Add-on debt facilities over-subscribed
• » A clear demonstration of confidence which the lending banks have in Refresco, its management team and FL Group's buy and build strategy

• » New equity injected into the business which puts Refresco in a strong position to continue the buy-and-build strategy

• Difficult market conditions for airline and travel companies due to higher fuel prices $\gg$ and decrasing demand

• » Changes at Sterling to move the company forward. New logo and branding campaign has been launched to reinforce Sterling as a full fledged scheduled airline
• » Sterling revenues in the year 2007 were approx. DKK 4 billion, EBITDA 2007 was DKK 15 million compared to DKK-119 million in 2006
• » Reza Taleghani appointed CEO of Sterling and Christian Gormsen appointed COO

DE-LISTING FROM OMX NORDIC EXCHANGE

• » The Board of Directors of FL Group has approved a motion to call an EGM in order to put to vote the Board's recommendation to proceed with the application for the de-listing of the Company's shares from the OMX Nordic Exchange in Iceland.
• » The Board believes de-listing will help unlock the long-term potential in FL Group and is in the best interests of the Company and its shareholders
• » Allows the management team to take a longer-term view
• » Avoid the pressure of pursuing short-term objectives sometimes demanded by the market
• » Logical step in the continued restructuring of the Group

$\ast$ Shareholders meeting

• » Held tomorrow at 8:30 in Hilton Nordica Hotel
• » Majority vote at the meeting is neccesary to approve the de-listing process

$\ast$ Offer to swap shares

• » FL Group shares purchased at ISK 6.68 per share
• » Paid with with Glitnir shares at ISK 17.05 per share. The swap ratio is therefore 0.3918 shares in Glitnir Bank for each share in FL Group
• » FL Group has made arrangements with Jotunn Holding ehf which will provide the Glitnir shares used in the share trade. The transaction will therefore have no effect on FL Group's 31.97% holding in Glitnir Bank
• » The swap offer will be valid from 9 May to 21 May 2008 at 4.00 PM for shareholders registered in the company's registry at close of business on 8 May and the de-listing process is expected to be completed a few weeks after that

SUMMARY

$\ast$ Financials

• » Financial position strong with equity of ISK 115 bn, and equity ratio of 33% in investment operations
• » Strong liquidity maintained, cash on hand amounts to ISK 18.9 bn

» Asset portfolio restructured

• » Market exposure decreased significantly
• » Non-core holdings divested

» Operations streamlined

• » Operating expenses reduced by 33.5% in investment operations
• » Plans of 50% reduction of operating expenses for 2008 on track
• » Current number of employees 26, compared to 41 five months ago

» Focus on core assets

» Glitnir, TM and Landic Property