Product innovation, the development in new markets, and the leveraging of its network in the Balkans with the expanded range of Delta products are the targets set for Delta Ice Cream Group for 2005, aiming at enhancing its free cash flows.

Above targets, in line with Delta Group?s strategy, also aim at overcoming the effects of 2004, which was a particularly difficult year for the ice cream sector. It should be mentioned that 2004 was characterized both by the adverse weather conditions that prevailed in SE Europe and especially in the Balkans, where the company realizes over 40% of its consolidated sales, and by the lower than expected volumes of tourism recorded during the Olympic Games in Athens.

Analytically for Delta Ice Cream S.A.:

• Sales in Greece amounted to euro 72.6 mio vs. euro 78.8 mio in 2003, dropping by 7.8%.

• The gross profit margin increased by 4.1 units to 49.8% vs. 45.7% in 2003, affected by the decrease in cost.

• Earnings before tax, interests, depreciation and amortization (EBITDA) in Greece increased by 10.5%, reaching euro 16.4 mio vs. euro 14.9 mio in 2003, as a result of the 5.1% decrease in the administrative and distribution costs.

• Earnings before taxes and interests (ΕΒΙΤ) increased by 13.8%, to euro 9.5 mio vs. euro 8.3 mio in 2003.

Earnings before taxes decreased by 34.6% to euro 3.7 mio vs. euro 5.6 mio in 2003 due to the expenses related to the Olympic Sponsorship which were completed in 2004, and the lack of the non-recurrent extraordinary income of euro 2.5 mio recorded in 2003.

On a Delta Ice Cream Group level:

• Sales amounted to euro 122.4 mio vs. euro 140.3 mio the previous year, decreasing by euro 18 mio or 12.8%.

• Earnings before taxes, interests, depreciation and amortization (EBITDA) reached euro 20.8 mio vs. euro 27.2 mio in 2003, recording a lower than expected decrease of 23.6%.

• Consolidated earnings before interests and taxes (ΕΒΙΤ) amounted to euro 5.3 mio vs. euro 10.8 mio in 2003, dropping by 51.4%.

Although the measures undertaken by the management contributed to

· the reduction in the fixed distribution cost,
· the limitation in the operational cost of the production facilities and
· the change in the operational cost from fixed to variable, they were however not able to offset the effects of the adverse weather conditions. As such, Delta Ice Cream Group closed FYE2004 with losses before taxes and minority rights of euro 4.2 mio.

It is noted that certain amounts have been adjusted in the financial statements of the parent company in order for them to be comparable in view of the implementation of the International Financial Reporting Standards (IFRS). Thus, during the current fiscal year and as opposed to the previous one, the goodwill of approximately euro 74.1 mio, which came from the absorption of its subsidiary in previous years, was not recorded under "Owners' Equity" but as "Intangible Assets".

The proposed dividend for 2004 is higher by 112.5% vs. 2003 and amounts to a total of euro 1.7 mio vs. euro 0.8 mio in 2003.