2003 Semi-Annual Results of SARANTIS GROUP

The first semester of 2003 has come to an end with increase in all primary aggregates for Sarantis Group.

Specifically, the first semester consolidated sales reached 108.2 million Euro in 2003 compared to 106.9 million Euro in 2002, presenting an increase of 1.2%. Pre-tax earnings increased by 37% in the respective period, reaching 10.9% Euro in 2003 compared to 7.9 million Euro in the first semester of 2002. Respectively, the Group results after deduction of minority rights, present an increase of 15% reaching 7.4 million Euro for 2003 compared to 6.4 million Euro in the respective period of 2002.

The increase of the rate for earnings before interest, taxes, depreciation and amortisation (EBITDA) is considerable and reached 17.3% for the first semester of 2003, while in 2002 it amounted to 14.9%.

According to the Group’s management estimates, the results of the first semester of 2003 have been positively affected by the significant decrease of carrying charge and distribution cost by 2.5 million Euro compared to the first semester of 2002, thus respectively improving the operational results of the Group.

Also, the Groups business activities in Eastern Europe are positively assessed, where despite the Euro’s strengthened status, the affiliates of Sarantis Group in Poland, Romania, Bulgaria and Serbia, present increase of profits compared to 2002.

Finally, the constant progress in regards to the aggregates of the joint venture with Estee Lauder in Greece, Bulgaria and Romania is considerable, especially in a period when the market is not quite open for luxury products.

The forecasts of the Group for 2003 in total are positive, referring to net sales of 234 million Euro and pre-tax earnings of 19 million Euro.