Fly Play hf. — M&A Activity 2008

Apr 8, 2008

Disclosure 257561

FL GROUP hf. - Company Announcement

-Baugur Group hf.

According to an announcement from Baugur Group hf. an agreement has been signed between Hagar hf., 101 Capital ehf. and Eignarhaldsfélagið ISP ehf. A part of the agreement is that the aforementioned parties purchase shares in BG Capital ehf, which until now has been wholly owned by Baugur Group hf. BG Capital ehf. owns 36.6% in FL Group hf. Hagar hf., 101 Capital ehf. and Eignarhaldsfélagið ISP ehf. pay for their share in BG Capital ehf. with their shares in FL Group hf. Kaldbakur hf. will also become a shareholder in BG Capital ehf. After the transaction the shareholders of Baugur Group hf. will own 24% in BG Capital ehf., 101 Capital ehf./Eignarhaldfélagid ISP ehf. 11.5% , Hagar hf. 11.6% and Kaldbakur ehf. 33.6%. BG Capital ehf. will be renamed Styrkur Invest ehf. and after the transaction will hold 39.05% in FL Group hf.