June 22, 2005
With the occasion of the announcement of the first quarter 2005 financial statements, the company?s management announces the following:
1. The financial statements were drawn according to the International Financial Reporting Standards (IFRS)
2. As already announced, we did not proceed in value adjustments of fixed assets based on the faire value given that the current net equity of the company is satisfactory while the share?s book value based upon the company?s net equity on 03/31/2005 amounts to 1.7 Euro. Such readjustment will be utilized in due time, through an equal increase in equity capital.
3. The parent and consolidated turnover during the first quarter of 2005 was slightly decreased compared to the respective figure of 2004, due to the decrease in consumption expenses and lower deflation levels in relation to 2004. However the aforesaid tendency has been inverted and as at 06/30/2005 total sales are expected to reach the corresponding levels of 2004, despite the aforementioned deflationary effects, while for the entire current fiscal period sales are expected to reach Euro 39 million.
4. Pre tax results decreased compared to the corresponding period of 2004, due to the aforementioned external factors. However sales? improvement during the current quarter but also for the current fiscal year will positively affect the results of the parent company as well as the consolidated results, given than sales of EXCEL air conditioners are characterised by intense seasonality during June and July while sales of OMNISHOP note major improvement since April.
Finally we note that during the 1st quarter of 2005 total bank debt compared to 12/31/2004 marked a decrease of Euro 640 thous. at consolidated level and remain at satisfactory levels at parent company level.