During 2004 the textile industry faced problems (such as China s growing global market dominance, the strength of the EUR against the US$), however VARVARESSOS S.A. increased the turnover by 9,9% reaching 28,45 million EURO. The gross profit margin amounted to 10,95% of total turnover - significantly improved - compared to 3,3% at the corresponding period of 2003.

Company s exports reached the amount of 20,95 million EURO (73,63% of total turnover) contrary to 18,28 million EURO (70,61% of total turnover) in 2003, increased by 9,45%.

Profits before depreciations has reached 3,2 million EURO the fiscal year 2004 contrary to 1 million EURO in fiscal year 2003 (increased by 220%) and was a result of the reduction of cost production and company s operational expenses. On a consolidated basis, the turnover during fiscal year 2004 reached 30,72 million EURO increased by 8,35% compared to 28,35 million EURO on 2003, while the net consolidated financial results, after the deduction of the proportion of the shareholder s minority rights, were improved, reaching 0,79 million EURO losses contrary to 3,5 million EURO in 2003.

The management of VARVARESSOS S.A. estimates that the financial figures will be further improved in 2005, since measures against reduction of cost production and operational expenses are expected to have beneficial effect in the results of 2005.