KORRES / FINANCIAL RESULTS 9M 2011

• 10% SALES INCREASE IN THE GREEK MARKET
• MARKET SHARE INCREASE IN THE PHARMACY NETWORK
• OPERATIONAL PROFITABILITY INCREASE
• CONTINUOUS GROWTH OUTSIDE GREECE

Strong sales increase for the KORRES Group in the Greek market for the third quarter of 2011, alongside continuous growth outside Greece and operational profitability improvement.

 The Group's consolidated sales for 9M/2011 are €31.8m. For consistency with 9M/2010, it has to be noted that the way the Group's US activity was consolidated has changed, as a result of the transition period completion in line with the distribution agreement with the Johnson & Johnson Group. Excluding the consolidation effect for the transition period relating to the US market from the 2010 turnover, translates into an 8% increase in consolidated sales for 9M/2011.

 Despite the Greek recession, the KORRES Group has achieved a 10% sales increase in Greece alone, while also increasing its market share in the Pharmacy network by 80 bps (10% in 9M/2011 vs. 9.2% in 9M/2010).

 Operational profitability has also improved; the Group's EBITDA has reached €6.6m vs. €6.5m in 9M/2010. It has to be highlighted that the Johnson & Johnson know-how & royalty proceeds up until 9M /2011 were €2.3m vs. €3.3m in 9M/2010 (contract phasing). Again for consistency, if this royalty-related phasing was excluded, profit before tax, interest and depreciation (EBITDA) in 9M /2011 would correspond to a 20% increase vs. 9M /2010. KORRES will continue to be receiving royalties as part of its agreement with Johnson & Johnson, maintaining thus a positive impact on its Group earnings.

 The profit after tax and minority interest for 9M/2011, amounts to €1m. vs. €2m in 9M/2010, mainly due to the Johnson & Johnson revenue phasing, the EURIBOR increase in 2011 vs. 2010, and the higher spreads relating to the Greek economic and credit crisis.

Operational Cash Flow in 9M /2011 is €1.4m vs. €2.6m in 9M/2010, mainly due to the Group's plans for the first half of 2012.

 Outside Greece, the KORRES Group continues growing, through targeted initiatives focusing on its top international markets, aiming to further strengthen the brand's presence.

 Furthermore, the Group has successfully completed its €9.5m share capital increase, strengthening its capital structure. The capital increase was covered in full by ARNETA Ltd (which belongs to investor Mrs. Alexia David); ARNETA Ltd has obtained a 14.1% of the Group's share capital.

For more information:

INVESTOR RELATIONS

Τ: 213 018 8905, E-mail: Investor.Relations@korres.com

PUBLIC RELATIONS

George Anthoulakis 

T (+30) 2130 188835 / E george.anthoulakis@korres.com