VARVARESSOS S.A. turnover during the 9-month period (01.01-30.09.2004) reached 20,99 million EURO compared with 19,08 million EURO in the corresponding period in 2003. The increase in turnover (10%) is attributed to the new products that are produced in the company s new spinning mill in Stenimachos Naoussa. The company s exports reached 15,52 million EURO against 13,38 million EURO during the same period last year, an increase by 16%. Profits before taxes marked a loss of 1,37 million EURO compared with a loss of 1,77 EURO in the year 2003.

During the 3rd quarter of 2004 company s results were affected by the prices of raw material (cotton) as well as the EUR/US$ parity. The measures that company took, reducing production costs and differentiating with new products and services, as well as the decrease in the prices of raw material will contribute to a further improvement in the financial results of the 4th quarter 2004.

It is estimated that the turnover for fiscal year 2004 will exceed 28,5 million EURO compared with 25,88 million EURO in the corresponding period in 2003. The profits before depreciation will also be improved and it is expected that they will reach 3,00 million EURO while depreciation will amount to 3,3 million EURO.