Sarantis Group: 2001 Financial Results.

For the year 2001, the Sarantis Group is expected to report consolidated profits of 16 million € (GRD 5.6 bn), increased by 10% as compared to the year 2000 (15.0 mn € or GRD 5.1 bn), on consolidated sales of 185 mn € (GRD 63 bn), increased by approximately 6% as compared to the year 2000 (175 mn € or GRD 59.6 bn).

As far as the parent company’s results are concerned, sales are expected to exceed 85 mn € (GRD 29.0 bn) increased by 3% as compared to the year 2000 (83 mn € or GRD 28.4 bn). Profits before taxes will reach 6.0 mn € (GRD 2.0 bn) in 2001, compared to 2.6 mn € (GRD 890 mn) in 2000, thus increasing by 130%.

The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) are expected to increase by a significant 34%, amounting to 33.5 mn € as compared to 25.0 mn € in 2000. As regards the parent company, EBITDA will show an increase of up to 90% as compared to the previous year.

It must be noted that, after taking into account minority interest the Group’s profit before taxes is expected to reach 12.9-13.5 mn € (GRD 4.4-4.6 GRD), compared to 14 mn € (GRD 4.8 bn) in 2000. This increase in minority interest is due to the formation of a joint venture between the Group and the Estee Lauder companies, effective as of July 2001.

The main features distinguishing the course of the Sarantis Group during this past year were its focus on its core activity of consumer goods, the reduction in operating expenses and the emphasis given on the expansion of the Group’s activities in Eastern Europe.

This process must also included a series of actions that were either completed during 2001, or are in the process of being competed, such as the Group’s withdrawal from the children’s clothing market, the sale of the Group’s stake in G.M.Ioannou AEVE, the operational merger of the Group’s companies in the field of over-the-counter pharmaceutical products and the discontinuation of the Group’s subsidiaries in Western Europe, with the exception of France.

As far as growth is concerned, all the Group’s subsidiaries in eastern Europe showed significant growth rates; also, the Group concluded an agreement concerning the acquisition of 70% of the Polish consumer goods company Pack Plast, which in 2002 is expected to add a turnover of approximately GRD 12 bn and is not included in the consolidated results for 2001.