The net profit before taxes of HELLENIC FABRICS S.A. increased more than 20% during the first quarter of 2002 relative to the first quarter of 2001. More specifically, the profit before taxes for the period 1.1. · 31.3.2002 amounted to about ? 1.3 million against ? 1.08 million in the corresponding period of 2001. This improvement results from the increase of gross profit, which clearly proves that the company's profit derives from its industrial activities.

The sales turnover in the first quarter of 2002 amounted to ? 22.25 million against ? 21.75 million in the first quarter of 2001, i.e. an increase of 2.3%, with very strong contribution from its export activity, as exports correspond to 80% of total net sales.

The company's Board of Directors met on April 24 and approved the Company and Consolidated Annual Accounts for the year 2001. The Members of the Board also decided to suggest to the Shareholder's Annual General Assembly, that will meet on Wednesday, June 12, the distribution of a dividend of ? 0.08 per share for the year 2001.

Kilkis Spinning Mills S.A., where Hellenic Fabrics S.A. holds 90% of the share capital, is proceeding to the realisation of second phase of its investment programme that amounts to ? 10 million. This investment programme is expected to be completed by the end of the current year, and will result to an increase in production capacity by 50% exclusively in yarns with special specifications.

During the meeting, the Board of Directors has been informed about the decision of the Indexes Committee of Athens Stock Exchange as well as of the Indexes Committee FTSE/ASE to include HELLENIC FABRICS S.A., as of June 3, 2002, in the composition of the General Main Market Index and in the Index FTSE/ASE Smallcap 80, a fact which is considered a positive development for the company.

The Board of Directors expressed its full satisfaction for the progress of the company's leading indicators also in the year 2002, which combined with the continuous improvement of its operational results, rank the company on top of the indigo denim fabric manufacturers in Europe.