HERACLES Group of Companies today announced sales of euro 443 million for the first 9 months of 2004, decreased by 1.1% compared to the previous year. The decrease in sales is mainly due to the foreseen reduced domestic market performance in the third quarter of the year, reflecting the termination of Olympic Games construction projects and the regulated restriction of deliveries in the Attica area in August 2004.

Operating expenses decreased by 3.5% compared to 2003. Net financial expenses decreased by 68.6%, as a result of the significant reduction of net indebtedness due to the realization of operational cash flows.

The total operating income of the Group amounted to euro 87.6 million compared to euro 84.8 million in 2003, reflecting the aforementioned reduction of operating and financial expenses. Profit before tax amounted to ruro 86.2 million after extraordinary and non-operating expenses, compared to euro 83 million in the previous year.

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 Halkis Evia and one in Milaki 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 is also active in the production and sale of ready-mix and aggregate products.

Lafarge is the world leader in building materials, and employs 75,000 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 euro 13.6 billion in 2003