GR. SARANTIS SA PROCEEDS WITH THE ACQUISITION OF PLIAS HUNGARY KFT

GR. SARANTIS SA announces that it has signed an initial agreement with Plias Group, with regard to the acquisition of the full share capital (100%) of the latter’s subsidiary in Hungary, Plias Hungary KFT.

Specifically, in an effort to further expand geographically and fulfill its strategic objective to become one of the leading consumer product distributor in Eastern Europe, Sarantis Group proceeded with an initial agreement to acquire 100% of the share capital of Plias Hungary KFT. The implementation of the above agreement will occur after the successful completion of the legal as well as the financial audit of the company (due diligence) from Gr. Sarantis SA, whereas additional issues concerning the acquisition will be announced when the final agreement takes place. The final completion of the deal is expected to occur until year-end, provided that Sarantis will receive the relevant regulatory approvals, whereas the financing of the above acquisition will derive from the Group’s already planned 2005 Capex.

Plias Hungary KFT was established in 1993 and mainly deals with the trade and distribution of consumer goods and other mass market products, such as cleaning products, soaps and cosmetics, in the Hungarian market. The company also operates a broad distribution network in this quite developing market, for the promotion of consumer products of companies such as PLIAS SA, EVRIKA, and Gr. Sarantis SA.

Through the above acquisition, Sarantis Group:

1. Ensures the broader distribution of its products in the Hungarian market (of 10 million consumers). The Hungarian market is currently among the faster developing markets in the European region,
2. Acquires a dynamic distribution network in the Hungarian market, and facilitates the goal of becoming one of the leading consumer goods distributors in the broader region of Eastern Europe,
3. Acquires a company with similar as well as complementary business objective, allowing the achievement of significant synergies and economies of scale.

Sarantis Group’s Management continues to apply an extrovert strategy, expanding activities in the promising Eastern European markets, and aiming at shareholders’ value generation.