The Group has announced that in accordance with the strategic goal of focusing in its core activity, has terminated the cooperation with the supplier LE COQ SPORTIF as of May, 10 2007. As a consequence the subsidiary firm MEGATHLON HELLAS SA, which was the exclusive representative of LE COQ SPORTIF products in Greece, ceases its operations and is set to the process of liquidation. The BoD is going to propose to the shareholders'' General Assembly May, 31 2007 as the date of the liquidation financial statements.
liquidation of MEGATHLON HELLAS SA will have a negligent impact on consolidated sales, since MEGATHLON''s turnover during the past years was decreasing and contributed less than 2% to the Group''s sales. Note that the liquidation of MEGATHLON incurs a non recurrent loss of Euro 3.77 million, which is going to appear in the financial statements of Q2 2007.
Moreover, the Group has announced that the sale of the lot and buildings of the EXPO ATHENS exhibitions'' center and the Anthousa SPRIDER STORE, produced a non recurrent profit of Euro 16.17 million, which will be accounted for in the financial statements of Q2 2007 (for this transaction the Group has issued a relevant announcement on 16/04/2007). It should be also reminded that the capital gain from the sale of semi finished apartments in the under construction building complex that SPRIDER BULGARIA EOOD develops in Sofia, amounted Euro 0.13 million (for this transaction the Group has issued a relevant announcement on 11/04/2007).
Summing up, earnings from the above non recurrent activities totaled Euro 12.53 millions and will be depicted in the Group''s financial statements of Q2 2007.
Holding true to the strategic decisions matches with the Group''s focus in its core retail activity and the planned expansion in the Greek market as well as the markets of Southeastern Europe.