The Accounting Statements for the fiscal year 2004 were issued based on the company's decision to record its dimensions with complete transparency, according to the International Financial Reporting Standards.

ΤΡΟΠΑΙΑ Α.Ε.Β.Ε.

The Accounting Statements for the fiscal year 2004 were issued based on the company's decision to record its dimensions with complete transparency, according to the International Financial Reporting Standards.

The Accounting Statements for the fiscal year 2004 were issued based on the company?s decision to record its dimensions with complete transparency, according to the International Financial Reporting Standards.

The Assets Account appears in the Balance sheet of 31.12.04 free from entries, which are not compatible with the I.F.R.S. According to the company?s decision, amounts concerning the Formation Expenses, the Prior Years Depreciation as well as the Doubtful Debts account, burden the fiscal year 2004 and diminish company?s Equity. Moreover the company?s Liabilities Account will include provisions required by the Principle of Conservatism.

The above result affects the Auditors Report which does not include negative notes for the issued Accounting Statements of fiscal year 2004. The subsidiary companies participating in the company?s Consolidated Statement issued its Accounting Statements the same way, in order for the Consolidated Statement indulge with the same Principles.

It is estimated that the official implementation of the I.F.R.S. during the following fiscal years, will not have negative effects in company?s Accounts and of course neither any unpleasant surprises for the shareholders. On the contrary, the application of the I.F.R.S. will allow the registration of the evaluation of the company?s fixed assets which will increase significantly its Equity.

Furthermore the official implementation of the I.F.R.S. will allow the proper recording of amounts referring to the evaluation of company?s participations and the negative reserve that has been formed. The aforesaid reserve includes undervalues of company?s portfolio which has been evaluated according to the Principle of Conservatism. After the I.F.R.S. implementation it is expected a significant improvement in the accounting evaluation of the non listed companies portfolio. The company?s management intention is to exhaust every provision and construction allowing the definite result of the Balance Sheet of fiscal year 2004 to lead the sum that will remain as a negative reserve to the retain losses account. That way the company avoids any possible technical obstacle for the next years dividend policy without decreasing its Equity.

The fiscal year?s 2004 P.& L. appears negative for euros 27,4 mil. which is entire due to the negative extraordinary profit and loss account of euros 12,1 mil. and the depreciations of euros 15,3 mil. The company?s Equity amounts to euros 76,2 mil. and appears decreased after the provisions that the Principle of Conservatism demands. Nevertheless after the I.F.R.S. implementation as well as its revaluation methods required by its frame of applications, the ?Equity? is expected to be increased.