FOLLI-FOLLIE Α.Ε.Β.Τ.Ε.

Consolidated earnings before tax at euro 56.4 million - Proposed 2005 dividend at euro 0.80

Consolidated sales for 2005 increased by 11.3% reaching euro 261.5 million compared to euro 234.8 million for 2004. Earnings before tax, after the deduction of minority interest reached euro 56.4 million from euro 58.3 million. It should be noted at this point that the financial results of 2004 include euro 1.75 million from the sale of the Company's participation in the companies EFSIMON and EFSIMON COLLECTIONS. Moreover, the financial results for 2005 were impacted on 31.12.2005 by an additional cost, for minimum annual guarantee regarding the Athens International Airport, of euro 1.98 million. The specific expense which would be normally charged in the fiscal year of 2006 (as it was the case for 2004) was instead charged in 2005 resulting to the earnings of 2005 being charged for both 2004 and 2005. If we review the financial results of the two years excluding the previously mentioned amounts then earnings before tax, after the deduction of minority interest for 2005 and 2004 would reach euro 58.4 million and euro 56.6 million respectively. As a result earnings for 2005 would show an increase of 3.3%. Consolidated earnings before tax, depreciation and amortization (EBITDA) reached euro 58.0 million from euro 58.6 million in 2004. Consolidated earnings after tax and after minorities reached euro 37.9 million from euro 42.0 million while consolidated earnings per share, after taxes and minorities, reached euro 0.719 from euro 0.797 in 2004. At this point it should be noted that the effective tax rate in the fiscal year of 2004 was exceptionally low due to the high tax free reserves of the Company. Turnover of the parent Company reached euro 245.7 million compared to euro 223.4 million in 2004 while earnings before tax reached ?55.9 million from euro 58.2 million. EBITDA reached euro 56.2 million from euro 57.5 million in 2004, while earnings after taxes reached euro 37.9 million from euro 42.3 million in 2004. The significant decrease in passenger traffic and the change in sales mix during the last quarter of the year were the main reasons for not fully achieving the Management's financial targets for 2005. Specifically during the last quarter of the year passenger traffic in border crossings decreased significantly by 8.7% while total passenger traffic in Greece decreased by 2.5% and particularly during December by 5.3%. Despite the unexpected conditions during the last quarter sales increased double digit confirming the Company's positive momentum and thanks to new business projects either already implemented or in the final stage of their implementation a double digit growth both in sales and earnings of the Group is expected. Finally, the Company's management wanting to reward its shareholders for their trust as well as to reaffirm the Company's sound economic position decided to propose to its Annual General Assembly of its Shareholders the distribution of ?0.80 dividend per share, increased by 14.3% compared to 2004 and exceeding the Company's earnings per share.