Titan Group sales for the 1st half 2003 were euro 488 m., a 5% decrease compared to the previous year while, operating EBITDA, at euro 121 m., was down by 9%. Net profit, after minority interests and provision for taxes, was euro 46 m., a decrease of 1.5% versus 2002.

Following a difficult first quarter, hit by adverse weather conditions and negative currency movements, the Group's performance for the second quarter brought results almost in-line with 2002.

The weakening of the dollar against the euro, by 23% versus the 1st half of 2002, resulted in correspondingly lower revenues and operating profits from the U.S. At constant Dollar/Euro exchange rates, Group sales rose by 4% while, operating EBITDA was down by 4%.

Looking more specifically at each market:

• In Greece, demand for building materials recovered most of the lost ground caused by adverse weather conditions during the first three months of this year.

• The U.S.A. market continued to experience some softness, with the exception of Florida, where demand continued to grow.

• In Egypt, cement prices recovered from the depressed level of the first quarter following the reorientation of the cost-competitive Egyptian cement industry towards exports thus, absorbing a significant proportion of the production capacity surplus which had pushed local market prices down.

• In the Balkans, the markets experienced broadly stable conditions.

Sales of the parent company, Titan Cement Company SA, decreased by 2% to euro 200 m., operating EBITDA reached euro 65 m., down by 6%, while net profits after taxes increased by 20% to euro 54 m., including income from participations of euro 15 m.

• Following a change in Greek Law, all participations at parent company level have been written down to net book value instead of acquisition cost, leading to euro 96.2 m write down depicted in the equity account. This has no impact on the consolidated balance sheet.

In August 2003, the new production line in Thessaloniki was completed. Following a successful commissioning process, production has already started. This investment which replaces the three old lines, uses state of the art technology with respect to production process and environmental protection.