Jon Sigurdsson appointed CEO of FL Group

Reykjavik (eNewsWire) 4 December 2008 – FL Group, the international investment company, announced today that Hannes Smarason has stepped down from his role as Chief Executive Officer and Jon Sigurdsson, FL Group’s Deputy Chief Executive Officer since 2006, has been appointed his designated successor. Smarason will remain a Director of FL Group’s Board and one of the leading shareholders in FL Group.

The Board also aims to divest 23% of its 43% holding in Geysir Green Energy. FL Group´s ownership in Geysir after the transaction will be 20.0%.

Jon Asgeir Johannesson, FL Group’s Chairman, said: “As part of the restructuring of FL Group’s investment portfolio, also announced today, Hannes Smarason has decided to relinquish his day-to-day role as Chief Executive Officer and will continue to provide ongoing strategic guidance from his position of Board Director. In light of these changes, we are delighted to name FL Group’s Deputy CEO, Jon Sigurdsson as the new Chief Executive Officer.”

“I am confident that Sigurdsson will carry on the strong legacy that Smarason has built over the past three years. Under his leadership, FL Group has shown significant growth and delivered outstanding value to our shareholders. We would like to thank Hannes for his dedication and efforts as CEO and we are delighted that he will continue to support Sigurdsson and his management team in his role as Board Director.”

Hannes Smarason, Board Director of FL Group, said: “I believe this is an ideal time to step down following the restructuring of FL Group’s portfolio and ownership structure. During my time at FL Group, we have seen the Company grow from being a small Icelandic firm, to becoming a global investment company, with over ISK 400 billion in total assets and over 4.000 shareholders.”

“I look forward to my continuing involvement in FL Group through my Directorship. I have every confidence that my former Deputy, Jon Sigurdsson, will continue to take the business from strength to strength and I look forward to supporting him and the FL Group management team in my role as Board Director.”

Jon Sigurdsson, newly appointed Chief Executive Officer, said: “I am extremely excited by the opportunity to continue to expand FL Group’s investment portfolio and financial capacity, as we continue to deliver shareholder value. FL Group has a strong management team and we are ideally positioned to build upon the strong foundations that Hannes has developed.”

FL Group also announced today, in a separate press release, significant investments in major property companies. To view this release please visit FL Group’s website www.flgroup.is.

Jon Sigurdsson – bio

Jon Sigurdsson joined FL Group as managing director in September 2005 and was appointed Deputy CEO in December 2006. Prior to joining FL Group, Jon worked at Landsbanki Íslands and Kaupthing Bank. He received his B.Sc. in Business Administration from Reykjavík University. Jon is the Vice Chairman on the Board of Glitnir bank and Director of the Board at Tryggingamidstodin.

Contact:
FL Group
Halldor Kristmannsson
Managing Director of Corporate Communications and IR
Tel: (+354) 591 4400 / 669 4476
E-mail: halldor@flgroup.is