HERACLES Group of Companies today announced sales of euro 278 million for the first semester of 2003, on a level with the same period of last year.

Both sales and production volumes have recovered following the disruption caused by the exceptionally bad weather conditions that prevailed in the first quarter of the year throughout the country.

Domestic cement sales volume increased by 2.8% amounting to 2.74 million tons, while export volume was slightly lower at 1.47 million tons.

Gross profitability margin marked a significant improvement compared to the first quarter of this year.

Operating expenses decreased by 7.8% compared to the first 6 months of 2002, reflecting improved efficiency mainly due to previous years' social plan.

Operating income of the Group amounted to euro 42.2 million, reflecting the aforementioned recovery of domestic market volume. Profit before tax reached ? 40 million compared to euro 16.5 million in the same period of last year that had been impacted by a provision of euro 19.6 million regarding staff termination indemnities.

HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece. One in Volos, which is the largest cement plant in Europe, one in Milaki Evia and one in Halkis Evia. The total production capacity of the Group is 9.6 million tonnes annually which makes it the largest cement producer in Greece. HERACLES Group owns a number of subsidiary companies that are active in the production and sale of ready-mix and aggregate products (Lafarge Beton), construction and instalment of metallic constructions, industrial automation and production control systems, and research and development. In 2002, Heracles posted sales of euro 558 million.

Lafarge is the world leader in building materials, and employs 77,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of ? 14.6 billion in 2002.

For more information please contact: Marianna Sofianou General Manager & Communications -Heracles Group of Companies, Telephone Number : +30 210 2898551. Sofianoum@aget.gr.