HERACLES Group of Companies today announced sales of euros 592.5 million in 2004, a decrease of 2.4% compared to the previous year. The decrease in sales is mainly due to the slowdown in volumes, as expected following the completion of Olympics' related building projects, together with the regulated restrictions in construction projects in the Attica area in August 2004.

The cost of sales reduced by 0.9% compared to 2003. The decreasing rate is lower than that of sales, mainly as a result of the huge prices increase of fuels (coal and petcoke).

Operating expenses increased by 3.0% compared to 2003 due to the provision for bad debts at parent Company level and the charging of premiums in respect of credit insurance.

Operating income before interests and taxes amounted to euros 115.7 million compared to euros 127.6 million in 2003.

Net financial expenses decreased by 75.1% and amounted to euros 1.2 million compared to euros 5.0 million in 2003. This reduction reflected the significant reduction of net indebtedness resulting from the growth in operational cash flows generation. Net income before taxes of the Group for 2004 present profits of euros 107.4 million compared to euros 117.0 million in 2003.

The Board of Directors of Heracles General Cement Company has recommended the payment of euros 0.40 dividend per share, same as last year.

HERACLES Group of Companies, a member of Lafarge, operates 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 77,000 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 euros 14.4 billion in 2004.