The Heracles Group of Companies aims at the improvement of its competitiveness in the domestic and international market and always in the context of sustainable development.

In order to ensure the high level capacity of all its units the Heracles Group of Companies will focus on exports. This flexibility allows the Group to manage the expected decrease of cement consumption in the domestic market after the completion of the Olympic Projects, which is expected to reach 5 % on a national level for 2004 Furthermore, as started in 2003, we will continue with the decrease of variable and fixed costs.

Main axes of the cost decrease are:

• The modernization of plants through investments

• The decrease of the labor costs, gradually and as a result of natural attrition which can be accelerated

• The reduction of energy and fuel costs through use of alternative energy sources and fuels

Commenting on the above the CEO of AGET Heracles Mr. Albert Corcos stated: 'The improvement of competitiveness is part of our strategy since 2003. What we believe is really important is to achieve this competitiveness in the context of Sustainable Development in order to ensure dialogue and partnership development, environment protection, economic value creation, and social improvement for all our stakeholders'.

HERACLES Group of Companies, a member of Lafarge, has 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 75,000 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 13.6 billion in 2003.