• Increase in sales by 2.2%

• Significant increase in Earnings before Interest and Depreciation (EBITDA) by 48.2%

As the current year is mainly marked by the decline in tourism, in spite of the optimistic predictions that existed due to the Athens Olympic Games, and the sharp increase in the price of fuel, which burdens heavily the vessel?s operating expenses and limits the operating profit.

Despite, however, the aforementioned negative factors, MINOAN LINES, strictly following the strategy the management has set, succeeded in not only continuing the growth of its financial results, but also in enhancing even more its profitability.

The considerable improvement that is observed in both the operating profit level and the net financial result is caused by the constraint of the vessels' operating expenses (despite the rise of the price in fuel) and also by the great decrease that has been achieved in expenditures as far as the sales and administrative expenses are concerned.

In detail, the company's sales were increased by 2.2% and reached EUR 79.5 million versus EUR 77.8 million of last semester, whereas the operating profit (EBITDA) is EUR 19.4 million versus EUR 13.1 million, increased by 48.2% versus last year. The operating profit margin has been considerably improved by 7.6 percentage points and reached 24.4% versus 16.8%. On a net result basis loss for the period was reduced to EUR 3.2 million against EUR 12.6 million in the first half of 2003.

Minoan Group's turnover has risen by 2.1% and reached EUR 79.8 million versus EUR 78.1 million last year's first semester, whereas the operating profit (EBITDA) reached EUR 19.5 million increased by 48.6% versus last year. On a net result level, the loss is significantly limited from EUR 14.2 million in 2003 to 7.1 million in the first half of 2004. The discrepancy between the net result of the group and that of the parent company is mainly attributed to the negative effect of Hellas Flying Dolphins, as th e former company is operating in a market with high and intense seasonality.

ADRIATIC - INCREASE IN MARKET SHARES

The market shares Minoan Lines possess in the market of Greece-Italy have been considerably improved despite the minor decrease of passengers and vehicles in the Adriatic Sea market as a whole. The increase in freight traffic continued for yet another year, reflecting the strong position and the growing importance of the Adriatic Sea in trade among Greece and the rest of Europe.

MINOAN LINES' MARKET SHARES IN ANCONA & VENICE

PAX CARS TRUCKS

1/1-30/6/2004 40.4% 45.6% 36.8%

1/1-30/6/2003 36.7% 40.4% 36.5%

Heraklion, August 26 2004