CONSOLIDATED FINANCIAL RESULTS Q1 2010

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• Significant improvement in the Q1 2010 financial results partly on the back of the EE countries’ stronger organic performance and favorable currency movements as well as the destocking effect that is absent from this year’s results.
• Sarantis Group’s turnover increased by 9.34% to €50.82 mil. from €46.48 mil. in the respective period last year.
• Gross profit margin stood at 51.13% in Q1 2010 from 49.39% in last year’s first quarter.
• Earnings before interest and taxes reached €3.78 mil. in Q1 2010, increased by 40.65%.
• EATAM rose by 162.36% amounting to €2.75 mil. from €1.05 mil. the same period last year. Excluding the one-off tax EATAM settled at €2.96 mil., posting an increase of 182.63% vs the respective prior-year period.
• The Group’s own brands’ turnover advanced, increasing at the same time their participation to total Group turnover.
• EE counties posted significant growth in sales, increasing their contribution to total Group sales.
• Solid cash flow generation and low leverage add to the Group’s robust financial position.

In Q1 2010 consolidated turnover increased by 9.34% reaching €50.82 mil. from €46.48 mil. in the respective period last year. The improvement in the Group’s consolidated turnover stems mainly from the improved turnover of the Group’s foreign markets which is a result of both organic and FX growth as well as the Greek market’s positive growth. However, despite the recent improvement, it is important to recognize that the macroeconomic environment in the Group’s Eastern European countries has not stabilized yet and therefore the management remains alert closely monitoring the economic situation in these markets. What is more, we remain particularly cautious towards Greece in view of the recently imposed austerity measures, even though the Greek market has exhibited a satisfactory performance during the first quarter of 2010.

Gross profit increased by 13.20% to €25.99 mil. in Q1 2010 from €22.96 mil. Gross profit margin settled at 51.13% versus 49.39%, positively affected by the favourable currency movements as well as the high participation of the own brands portfolio.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) posted an increase of 32.10% to €4.72 mil. in Q1 2010 from €3.57 mil. in Q1 2009, while the EBITDA margin stood at 9.29% from 7.69% in the respective prior-year period.

Earnings before Interest and Tax (EBΙΤ) reached €3.78 mil. from €2.68 mil., increased by 40.65% and EBIT margin rose from 5.78% in Q1 2009 to 7.43% in Q1 2010.

The Group’s financial income amounted to €1,529 in Q1 2010 from -€1.18 mil in Q1 2009 mainly due to lower interest expenses and favorable currency movements. Therefore earnings before taxes (EBT) settled at €3.78 mil. from €1.50 mil. in Q1 2009, an increase of 151.70%.

Earnings after taxes and minorities reached €2.96 mil., increased by 182.63% compared to Q1 2009. Including the one-off tax of €0.21 mil. EATAM settled at 2.75 mil., increased by 162.36% compared to the respective prior-year period and the EATAM margin settled at 5.41% from 2.25%.

Despite the challenging macroeconomic environment Sarantis Group has successfully continued to generate solid cashflows, a fact attributed largely to management’s focus behind the efficient working capital management and cost saving initiatives.

More specifically, the Group’s operating working capital settled at €66.88 mil. in Q1 2010 from €64.10 mil. in FY 2009 and €71.17 mil. in FY 2008, while operating working capital requirements over sales settled at 29.73% vs 29.05% and 27.44% respectively. At the same time the Group benefits from a healthy capital structure and low leverage. In Q1 2010, The Group’s net debt reduced significantly to €5.8 mil. from €9.14 mil. in 12M 2009.

During the first quarter of 2010 the Group presented significant growth in sales across all business categories, reversing the previous year’s downward trend. This came mainly as a result of the Group’s foreign markets organic growth which was also supported by favorable currency movements as well as the Greek market’s satisfactory performance.

More specifically, during Q1 2010 the Household Products demonstrated significant growth of 11.21%, reaching €22.28 mil. from €20.03 mil. in the respective prior-year period. Own brands within this SBU increased by 12.01% while their participation to the SBU’s turnover stood at 99.84%

During Q1 2010 Cosmetics recorded a sales growth of 9.85% amounting to €21.86 mil. from €19.90 mil. in Q1 2009. In this SBU, own brands demonstrate an increase of 9.20% and their contribution to total turnover reached 67.36%.

The category of Other Sales also had a satisfactory performance during Q1 2010 increasing by 2.08% mainly driven by the subcategory of the Health & Care Products.

In terms of the Group’s operating profit the improvement across all business units should be highlighted.

The Household products EBIT continued its growing trend, advancing by 61.48% to €1.68 mil. from €1.04 mil. in Q1 2009. Their contribution to total EBIT increased from 38.71% in Q1 2009 to 44.44% in Q1 2010, while their EBIT margin reached 7.53% from 5.19%. Own brands of this category posted an EBIT growth of 63.82% during Q1 2010, reaching €1.70mil.

Cosmetics EBIT even though decreased in Q1 2010 by 22.92% was considerably improved versus the previous quarters. The Cosmetics EBIT margin during Q1 2010 settled at 5.35% vs 7.63% in Q1 2009 and 0.72% in Q4 2009. The operating profits of own brands within this category stood at €1.06 mil. during Q1 2010 from €1.26 mil. in Q1 2009, reduced by 15.34%.

The Estee Lauder JV income posted significant growth settling at €0.89 mil. from €0.21 mil. in the respective period last year.

Looking at the geographical analysis, during the first quarter of 2010 we noted a significant improvement in the foreign markets of the Group which was largely attributed to improving trends in the countries’ consumer spending as well as favorable foreign exchange rates.

More specifically, during Q1 2010 the turnover in the Group’s foreign markets increased by 15.85% vs the respective prior-year period, which consists of a 9% growth in local currency and a c. 7% average currency appreciation.

During Q1 2010 we observed a satisfactory performance in the Greek market that benefited from the early Easter period and the absence this year of the massive destocking that took place during the first half of 2009.

In particular, sales in the Greek market increased by 1.12% during Q1 2010, reaching €20.76 mil. from €20.53 mil. in Q1 2009.

However, despite this improvement, given the recent austerity measures imposed by the Greek government, the management remains cautious towards the Greek consumer spending.

As far as EBIT is concerned, the Greek EBIT during Q1 2010 was increased by 66.71% to €2.80 mil. from €1.68 mil. Excluding the Estee Lauder JV income, the Greek EBIT reached €1.90 mil. in Q1 2010 from €1.47 mil. in Q1 2009 increased by 29.49%. The Greek EBIT margin, excluding the EL JV income, stood at 9.17% in Q1 2010 from 7.16% last year.

The foreign countries EBIT reduced, though at a significantly lower rate. In particular, EE countries EBIT reduced by 2.73% to €0.98 mil in Q1 2010 from €1.01 mil in Q1 2009. This reduction is mostly attributed to the increased A&P expenses during the first quarter of 2010 which aimed at supporting the Group’s brands and increasing turnover. It should be mentioned however that the annual expenses on A&P as a percentage of sales will remain at the previous years’ level. The foreign countries EBIT margin settled at 3.26% in Q1 2010 vs 3.88% in Q1 2009.

Sarantis Group Q1 2010 financial results were significantly improved compared to the previous year supported by the increased organic performance in the Group’s foreign markets, the favorable currency movements, the end of the key accounts destocking process (observed in H1 2009) and the early Easter period this year. What is more, it is important to highlight the management’s successful implementation of focusing on keeping low leverage as the Group’s net debt has reach its lowest level. However, despite some early signs of stability the management remains alert towards the economic environment in Eastern Europe and especially in Greece because of the recently imposed austerity measures.

At the same time the Group remains focused on its strategic pillars of growth that consist of organic growth of the core business activities and emphasis on Sarantis own brands portfolio, increase of the existing market shares of own brands in the region, continuous examination of the situation in the economies of the Group’s countries and modification of the business where deemed necessary according to the new market conditions and finally emphasis on the examination of possible acquisition targets in the old countries of operation, as long as market share, profitability and cost structure allow for synergies.