"ALTEC S.A." announces that she has entered into 2 sale and lease back contracts with "ATE Leasing S.A.". These contracts refer to two ALTEC' s adjacent plots (land with buildings under construction) located at (i) 5 Agraphon Street and Patmou Street, Maroussi, (ii) 16-18 Patmou Street and Apostolou Pavlou Street, Maroussi, of a total surface of 4,300 square meters approximately. At these sites, ALTEC has already begun construction of two state-of-the-art four-story buildings (each having two additional basements) in order to ensure office space for her expanding business activities and all relevant complex technological infrastructure, especially in the telecommunication sector. The total value of these leasing contracts is 22,500,000 euros. This amount includes the construction costs of the buildings under construction (9,815,000 euros). ALTEC has already received the amount of 12,685,000 euros, which is the amount receivable by ALTEC under the agreement reached. As per contractual terms, construction is expected to be completed by 30.6.2007. The leasing contracts are of a 15-year term starting on the day construction is completed. From this day onwards, ALTEC shall be paying a total monthly rent of 176,000 euros approximately. Upon completion of the 15-year term, ownership of said 2 properties (plot of land and building) shall return to ALTEC for an amount of 1,000 euros per property. By this agreement, ALTEC seeks and accomplishes:
- To utilize her idle assets by making them useful and very productive.
- To confirm her expansion, especially in the telecommunications sector, where it is necessary to develop large and complex building and technological infrastructure, whose relocation may prove to be extremely difficult, if not impossible.
- To bring together, at a cluster of privately owned buildings, all her business endeavors; as a result, ALTEC attains not only economies of scale at an operational and organizational level, but also retrieves from using buildings owned by third parties for which ALTEC spends significant amounts for improvement and infrastructure and pays high rent.