ELMEC SPORT S.A. announces that the Company has entered the last stage of negotiations towards an agreement with CONVERSE Inc. With this agreement Elmec Sport will assume the exclusive distribution of Converse products in Greece and Cyprus and will obtain the license to produce and then distribute to the aforementioned markets sports gear bearing the brand name and trademarks of Converse Inc. This agreement will hold for 6 years commencing from 1/1/2007.
A great part of the loss in sales volume the Company suffered because of the termination of the distribution of Nike products in Greece and Cyprus in June 2006, will be substituted by this new activity. In addition, the acquired production rights, in conjunction with the longstanding experience of the Company in the sports and fashion markets, will substantially enhance the Company''s profitability.