Company: Net Income +223%, EBITDA + 60%, Revenues +10%.
Group: Net Income +38%, EBITDA + 68%, Revenues -3%.

MICHANIKI SA is pleased to announce strong profitability growth in 2005, both at a group and parent company level, as is shown on its financial statements of December 31, 2005, based on International Accounting Standards (IFRS). At a parent company level, Michaniki SA?s turnover for 2005 grew 10.3 percent y/y, to 84.30 million euros from 76.46 million the same period a year earlier. The company's EBITDA stood at 26.95 million euros in 2005, from 16.82 million the year before, marking an increase of 60.2 percent. Michaniki SA's Net Income (after tax, Board fees, and after minority rights) jumped 223.6 percent to 15.04 million in 2005, versus 4.65 million euros in 2004, increasing accordingly the net profit per share to 0.1619 euro/share in 2005 versus 0.05 euro/share in 2004. Michaniki Group consolidated turnover decreased marginally, by 2.6 percent, to 116.40 million euros versus 120.03 million euros in 2004, according to the International Accounting Standards. Consolidated EBITDA increased by 68.6 percent to 38.23 million euros in 2005, from 22.67 million the year before. Group Net Income after minority rights grew by 38.4 percent y/y, to 19.63 million euros in 2005, from 14.18 million in 2004. Consolidated profit per share is 0.2113 euro/share in 2005, versus 0.1527 euro/share in 2004. Dividend payout scheme remains to be clarified by state authorities, because issues related to the first ever release of full year financial results from Greek GAAP to IFRS need further clarification, especially dealing with past years accumulated losses. In any case, Michaniki' Management intends to propose to the General Assembly of the Shareholders a payout that is higher than last year's dividend, meaning more than 0.12 euro/share. As far as the Company's strategy for this year is concerned, Michaniki has laid the foundations and estimates that 2006 will be another good year for the Group and its activities in Greece and abroad:

Constructions:
Michaniki will continue to widen its market share in Greece's public infrastructure projects. During 2005 the company increased dramatically its backlog of unexecuted works to more than 550 million euros. For 2006 the Company's role and activities in the domestic market will grow further for the benefit of its shareholders, its employees and the local economy.

Real Estate Development:
- Michaniki operates the Commercial Centre "Athena" located in Odessa, Ukraine. The Centre totalling 30,000 sq.m. of surface area, accommodates 162 shops, dept stores, recreational areas, and office spaces for international and local companies.
- In Kiev, Ukraine, Michaniki has started the construction of a 50,000 sq.m. Building Complex named "Artemis".
- The "Delfinia" Recreational and Park Development Complex in Odessa, Ukraine is in its final stage of authorities approval. Located at the city's harbor in the Black Sea, Delfinia development totalling 202,180 sq.m.
- In a land plot of 20,000 sq.m. in Moscow, Russia, Michaniki is going to develop a mixed use building complex of 131,000 sq.m, for hotel, office and commercial space.
- In Sofia, Bulgaria, the Company owns two land plots. The first, 17,500 sq.m. was sold lately for 11.0 m. euros at a profit of appr. 10 m. The second, totalling 30,000 sq.m. located in the Botanic Gardens is to be developed for housing units.

Energy Production:
Early on the Company moved to take advantage of the liberalization of the Greek electricity market utilising its know how in Hydro construction. Michaniki now operates its first privately owned hydroelectric project of 4MW capacity (Theodoriana) and owns a license to build another major hydro project of 93MW capacity (Agios Nikolaos) that is budgeted at 150.0 m. euros.

Industrial Plants (subsidiaries):
- Hellenic Pipe works, now operates a new production line of cement coating of steel pipes increasing exports to the US and Mid-East markets. For 2006 it is estimated that revenues and profits will double.
- Balkan Export (wood processing) and Marmara Kavalas (marble production) estimated that will increase profits while stabilizing revenues at 2005 levels.
- BIEX metal structures stopped operations and sold its land plot to German firm Praktiker for 17.5 m. euros.