1. Handling of the Company's loss The Annual General Meeting approved that the equity of the Company would be reduced by the loss of the Company in the year 2007 and that no dividend would be paid to shareholders in the year 2008. 2. Remuneration Policy The Annual General Meeting approved the following proposal of the Board of Directors of FL Group on Stock Options and FL Group's Remuneration Policy: “FL Group emphasises on being able to recruit skilled personnel and hold its key personnel to secure the ongoing growth of the company and acceptable return on equity. In relation thereto the company has granted key personnel stock options for shares in the company and issued and renewed stock options. In relation to the practice of the aforementioned goal of the company stock options granted to key personnel may at any time in total be up to 9% of the company's outstanding share capital. Purchase price (strike price) shall equal market price at the time when the option is granted. FL Group's Remuneration Policy is based on good practice of corporate governance and the company's goals on growth and return on equity. The Board of FL Group has agreed upon the following Remuneration Policy with reference to Article 79. A in Act No. 2/1995, on Public Limited Liability Companies. Members of the Board shall receive a fixed fee for their duties as Directors. The fee for both general duties as Directors and as members of the Boards' subcommittees shall be decided upon by the company's Annual General Meeting for the period from the AGM to the next AGM. Board members may take on other duties on behalf of the Company and be remunerated for such services according to a special agreement approved by the Board of Directors. The CEO's terms of employment shall be based on a written agreement. The CEO's remuneration shall be agreed upon in line with his responsibilities and on basis of his duties taking notice of the Company's size and operations in general, and in line with general remuneration development in the countries where the company operates and in line with the progress of the Company. The CEO's remuneration may consist of fixed salary, bonuses in cash payments and shares, stock options, warrants, pension fund contributions and if deemed feasible redundancy and termination payments. Remuneration of other key personnel shall also be based on the aforementioned key elements. In the Annual General Meeting the Board of Directors shall disclose to the shareholders the terms of employment of the CEO, and board members of the Company. The Board of Directors shall disclose the total amount paid in salaries in any form in the previous financial year, payments from other companies within the Group, and stock options and all other forms of payment pertaining to stock in the company and retirement payments, if any.” 3. Remuneration of the Board of Directors The Annual General Meeting approved the remuneration of the Board of Directors in the period from the Annual General Meeting 2008 until the Annual General Meeting 2009 would be as follows: Chairman of the Board ISK 350,000 per month. Vice-Chairman ISK 250,000 per month . Other directors ISK 175,000 per month. Reserve board members shall be paid ISK 50,000 for each meeting attended. Board members shall receive a fixed fee for each meeting they attend in the Board's subcommittees. The fee shall be ISK 100,000 for the Chairman of the relevant committee for each meeting but ISK 50,000 for other members for each meeting attended. The fee for attending meetings in subcommittees in the period shall however not exceed ISK 600,000 for the Chairman and ISK 300,000 for other members. 4. Board of Directors The following persons were elected as members of the Board of Directors for the term of one year: Board Members: Árni Hauksson, id. no. 250766-5569 Eiríkur Jóhannsson, id. no. 080268-4839 Hannes Smárason, id. no. 251167-3389 Jón Ásgeir Jóhannesson, id. no. 270168-4509 Katrín Pétursdóttir, id. no. 230562-2109 Pálmi Haraldsson, id. no. 220160-3789 Þorsteinn M. Jónsson, id. no. 180263-3309 Alternates: Peter Mollerup, id.no. 220173-2759 Þórður Bogason, id.no. 260663-3809 At the board meeting following the shareholders meeting, Jón Ásgeir Jóhannesson was elected Chairman of the Board and Pálmi Haraldsson Vice Chairman. 5. Auditors KPMG hf., Borgartún 27, Reykjavík, was re-elected as the company's auditor for 2008. 6. Amendments to the Articles of Association The Annual General Meeting approved to increase the authorization of the Board of Directors in subparagraph b of Paragraph 2 in Article 4 in the Articles of Association to increase the share capital by means of subscription to new shares, for up to ISK 2,500,000,000, without pre-emptive rights of shareholders, in next five years from 11 March 2008. It was also approved that subparagraph a of the same Article in the Articles of Association, which states the authorization of the Board of Directors to increase the share capital of the company by issuance and sale of new shares to finance the purchase of shares in Tryggingamiðstöðin hf., would be deleted, and that subparagraph b and c would move upwards parallel and become subparagraph a and b. After the changes the Chapter „Share capital, shares and classes“ of Article 4 will be as follows: “The Board of Directors may increase the share capital of the company by up to ISK 3,000,000,000 of nominal value with sale of new shares as follows: a. The company's Board of Directors is authorized to increase the company's share capital by up to nominal value of ISK 2,500,000,000. The Board of Directors may implement the increase in stages over the next five years as of from March 11, 2008. The Board of Directors is authorized to sell the increased share capital without the pre-emptive rights of Article 34 of Act Respecting Public Limited Liability Companies No. 2/1995 and the provisions of Article 4 of the company's Articles of Association being applicable. The company's Board of Directors decides the tender price of shares, justifies it, decides the rules of sale each time along with the subscription and payment period, and whether it is permitted to pay for the shares by other means than cash payment. The new shares shall grant rights in the company from the date on which they are registered and they shall be governed by the company's Articles of Association. b. The company's Board of Directors is authorized to increase the company's share capital by up to nominal value of ISK 500,000,000. The Board of Directors may implement the increase in stages over the next five years as of from September 25, 2007. The increase is subject to the pre-emptive rights of Article 34 of Act Respecting Public Limited Liability Companies No. 2/1995 and the provisions of Article 4 of the company's Articles of Association being applicable. The company's Board of Directors decides the tender price of shares, justifies it, and decides the rules of sale each time along with the subscription and payment period and whether it is permitted to pay for the shares by other means than cash payment. The new shares shall grant rights in the company from the date on which they are registered and they shall be governed by the company's Articles of Association. The offering price of the shares and the rules of sale shall be determined by the board of directors in accordance with section V of Act no. 2/1995 on Public Limited Companies. This authorisation shall be exercised within five years of being approved. The authorisation may be exercised in its entirety or in part as decided by the board of directors. Share capital is divided into shares of one króna or multiples thereof. Any increase in share capital must be approved by a shareholders' meeting.” 7. Purchase of own shares The Annual General Meeting approved, with reference to Article 55 of the Act No. 2/1995 on Public Limited Liability Companies, to authorize the company's Board of Directors to purchase, over the next 18 months, up to 10% of the company's own shares. The shares' purchase price may be up to 20% above the average sales price of shares on the Iceland Stock Exchange in the two weeks immediately preceding the purchase. No lower limit is set on this authorization, either regarding the purchase price or the size of the share purchased each time. With the approval of this proposal, an identical authorization approved at the last Annual General Meeting is cancelled. Further information: Júlíus Þorfinnsson, Head of Corporate Communications, tel. +354 591 4400