The Extraordinary General Assembly of Sarantis SA has been completed

PRESS RELEASE

The Extraordinary General Assembly of Sarantis SA has been completed. Since there was no quorum, the only issue that was discussed concerned the allocation of the funds amounting to 22.7 billion drachmae, raised through the company’s share capital increase, which was completed last September.

According to the Prospectus, the allocation of the funds had been initially specified as follows: 10 billion drachmae would go to the repayment of short term lending obligations and 12.7 billion, had been earmarked for the increase the Group’s working capital.

Following a proposal by the Board of Directors of Sarantis, it was decided that the raised funds will be used as follows: 7.2 billion drachmae for the repayment of the company’s short term loans, 15 billion for the acquisition of ZETA SA and 0.5 billion for working capital.

It has to be reminded that ZETA SA is the exclusive dealer of the Estee Lauder companies in Greece, and the holder of the rights for the signing of a Joint Venture agreement with the Estee Lauder Group of Companies, covering Greece, Bulgaria and Romania.

During the extraordinary General Assembly the Management of Sarantis also presented the forecasted results of the Group for the year 2001. According to a statement by the company’s Board of Directors, turnover is expected to exceed 70 billion drachmae (205 million Euro), increasing by 18% in comparison to 2000. Pre-tax profits, after the deduction of minority interest, are expected to amount to 5.4 billion drachmae (16 million Euro), thus increasing by 13% in comparison to 2000.

It must be stressed that, on the operating result level, growth is forecasted to approximately 26%. More specifically the result before taxes, depreciation, amortization and extraordinary items for the year 2001 is expected to reach 10.5 billion drachmae (30.8 million Euro), as compared with 8.3 billion (24.4 million Euro) for the year 2000.

The forecasted results for the year 2001 include a series of actions, which, according to Sarantis’ management, will enhance both the operating result, and the liquidity of the Group.

These actions can be summarized in two areas. Firstly, any growth for the year 2001 will rely mainly on the Group’s existing activities. That is, the main part of the growth forecast does not include any provision for new acquisitions. Secondly, the Group has elaborated an expenditure reduction plan, which is expected to lead to the substantial decrease of operation costs within a two-year horizon.

Finally, the course of the Sarantis’ Group for the first quarter of 2001 is consistent with the above forecast.