According to the financial statements which will be published οn 26th of the current month, Hellenic Fabrics S.A. showed an improvement in efficiency and its main financial figures in the first nine months of 2005 in comparison with the same period last year.

Specifically, improved profitability is presented on a consolidated basis as EBITDA margin reached 19.68% compared to 13.58% in last year's period. In this period, profit before tax, interest and depreciation (EBITDA) amounted to euro 12.54, improved by 27.60% and consolidated profit before tax amounted to euro 6.48 mln, improved by 63.27%. Profit after tax amounted to euro 4.18 mln, improved by 70.08%, with net profit margin reaching 6.02% compared to 3.56% in the nine-month period of 2004. The strategy of the company for 2005 has focused around maintaining the selling price of denim fabric, besides the fall in raw material price and as a result, consolidated turnover amounted to ? 63.68 mln, decreased by 11.95%.

The group's liquidity continued to strengthen during the nine-month period, as the positive cash flow from its operating activities of euro 24.62 mln, was used to finance investments of euro 6.68 mln and to reduce its loans from euro 58.25 mln in 31/12/2004 to euro 38.57 mln. Until the end of the year, investments on machinery will reach euro 11.00 mln, thus completing the 2000-2005 investment program of euro 75.20 mln.

Strong cash flow resulted to improved "Debt-equity" ratio, which amounted to 1.43 while in 31/12/2004 it was 0.96.

A result of its improved efficiency and its main financial figures, is the 50.01% increase of the ratio Earnings per share after tax reaching 0,29 per share. Moreover, the ratio P/E after tax was estimated at 8.66 while the "Price to book value" ratio (P/BV) amounted to 0.41.

Profit before tax, interest and depreciation (EBITDA) of the parent company amounted to euro 9.02 mln, improved by 21.59%, profit before tax amounted to euro 4.54 mln, improved by 39.58% and finally profit after tax amounted to euro 3.40 mln, improved by 68.43%. Parent company turnover amounted to euro 59.56 mln, decreased by 12.10%. Exports contribute more than 75% to total turnover. Under the present circumstances, prospects for the fourth quarter of the current year remain positive. The management of Hellenic Fabrics S.A. estimates that profit before tax for 2005 will present an increase similar to the one of the nine-month period and will outperform the initial forecasts for the fiscal period of 2005.