VARVARESSOS S.A., effectuating the decision of the Extraordinary General Meeting of the company s shareholders, that took place on 04.11.2004, proceeded the issue of the Common Bond Loan of 18.000.000 EUR, with issue Consultant and Administrator PIRAEUS BANK S.A.

There were issued 72 bonds of nominal value 250.000 EUR each, and they were placed on 10.05.2005 from the Administrator PIRAEUS BANK S.A., to the subscriber Banks, PIRAEUS BANK S.A., ALPHA BANK S.A., EMPORIKI BANK S.A., LAIKI BANK S.A., ATTIKI BANK S.A. and EPENDITIKI BANK S.A.

The duration of the Bond Loan is 5 years and can be prolonged by two more years. The full payment will be made in sixteen (16) three-month installments, fifteen of which equal installments of 750.000 EUR (the first is payable 15 months after the issue date of Bond Loan), while the last one will amount to euro 6.750.000 payable on the expiration date of the Bond Loan.

The above mentioned Bond Loan will be used to finance the already existent Bond Loan of euro 13.500.000 and company s short-term bank liabilities.