An agreement was signed in Nicosia, on July 4th 2005 between Chipita Participations Ltd (100% subsidiary of Chipita International) and two funds managed by Global Finance (Black Sea Fund and Euromerchant Balkan Fund), pursuant to which Chipita Participations has acquired the entire shareholding of the above- mentioned funds (28.74%) in the share capital of Chipita East Europe Ltd, the holding company for all of Chipita?s Group activities in the countries of Eastern Europe. The consideration amounted to euros 25.66 million.

Also, on the same day, an agreement was signed in Nicosia between Chipita Participations Ltd and Delta Food Holdings Ltd (subsidiary of Delta Participations Group) pursuant to which the former acquired the latter?s total shareholding (12.68%) in the share capital of Chipita East Europe, for euros 11.32 million.

Following their multi-year presence in the share capital of Chipita East Europe, Global Finance and Delta Participations- with both of which Chipita maintains excellent relations-decided to liquidate their positions, almost doubling the value of their investments.

In addition, another agreement was signed yesterday in Nicosia, pursuant to which Chipita East Europe Ltd sold to Mr. Konstantinos Mitzalis 41.42% of its participation in the share capital of Chipita Russia (Cyprus) Ltd, at the same valuation at which Chipita Participations acquired it from Global Finance and Delta Food Holdings, i.e. euros 1.7 million.

The net result to the above-mentioned transactions is the increase of Chipita?s percentage shareholding in the manufacturing companies of Bulgaria, Romania and Poland as well as in the commercial companies of Hungary, Czech Republic and Slovakia from 51.33% to 92.75% while the percentage of Group?s participation in its activities in Russia remains unchanged at 51.33%.

The purchase of minorities? participations in the share capital of Chipita East Europe is a strategic target for the Group, as management anticipates a marked increase in sales and profitability in the countries of Eastern Europe in the future.