ATHINAIA S.A., and MULTIRAMA S.A. are moving towards a strategic partnership.

ATHINAIA S.A., one of the most historic companies in the department stores business, and MULTIRAMA S.A., a subsidiary company of GERMANOS S.A. and SINGULAR S.A., which operates in the retail business of information technology & telecommunication products and services are moving towards a strategic partnership.

According to a private contract signed between the two companies and their main shareholders (GR.SARANTIS S.A., GERMANOS S.A. and SINGULAR S.A.), ATHINAIA S.A. and MULTIRAMA S.A. will merge with absorption of the latter from the first. Their value ratio was initially estimated at 17,5 : 82,5 in favour of MULTIRAMA, but it will be finalised after the modified balance sheet and the chartered accountant’s report have been drawn up (estimated to be completed by the beginning of April).The merger is under the approval of the Shareholders’ General Assembly of the two companies, the Ministry of Development and the Information Bulletin from the Board of Directors of the Athens Stock Exchange. The merger procedure is estimated to be completed in five months.

After the fulfilment of this agreement, the economic figures of ATHINAIA S.A. will be reformed due to the contribution of the activities deriving from MULTIRAMA stores. At the same time the size of the new company is expected to become a pole of attraction for Greek and foreign investors, thereby strengthening the dispersion and the trading volume of the stock.

This agreement is actually broadens the co-operation of GR.SARANTIS S.A., GERMANOS S.A. and SINGULAR S.A., which started with their participation in the group of investors that took over the management of Duty Free Shops (D.F.S.). Under the scope of expanding their activities in Greece and in the greater Balkan area where great opportunities for growth arise, further collaboration among these companies is not ruled out. Details about the future plans of this new company will be announced to the Press soon.

At present, MULTIRAMA S.A. has a dominant position in the retail business of information technology & telecommunication products and services and has a network of 42 stores in Greece and in Cyprus. Until the end of 2000, the number of the stores is expected to reach 70, with simultaneous expansion to the markets of Central and Eastern Europe. At the end of 1999, the company achieved a significant participation in the share capital of INTERNET HELLAS S.A. company, having as an objective to strengthen its business activity in the sector of telecommunication services. The turnover of MULTRIRAMA S.A. in 1999 exceeded 12 billion Drs., while its profits before tax reached approximately 700 million Drs.

ATHINAIA S.A. has four sales points of clothing, two of which are located in the centre of Athens, one in Piraeus and one in Chalandri. These stores include points of retail sale of other companies with the shop- in-shop method. The company during the last three years has been operating at a loss. In 1999, its turnover in a consolidated basis was approximately 2,2 billion Drs., while the fiscal year ended with losses of approximately 350 million Drs.

The consultant in this agreement was Telesis Securities.