In response to the letter of the Athens Stock Exchange of 16/6/2006, and according to the Rule of the HCMC 5/204 Article 5 par. 1a, the company announces the following:
Since the completion of renovation works of Arion and Nafsika Hotels in summer 2004, the Management of Astir Palace Vouliagmeni S.A. (Astir) examined the possibility of renovation for the remaining of the Astir complex. Among other things, the Management examined the potential renovations of the Aphrodite Hotel and the bungalows, according to modern international standards, as well as the construction of a congress centre. The Management of Astir judged that it was not advisable to proceed to refurbishment works, while it was still in progress the international tender for the management of the hotels by a specialist hotel operator. And the reason behind this, is that it was judged, that it would be particularly advantageous for Astir, if the relative works were done in collaboration with the new Manager, who would have great experience in the international standards that the Management of Astir wishes to apply. For this purpose, in terms of the international tender, the Management of Astir asked the candidates to present, among other things, their proposals for the character and the style that would better suit the hotel Aphrodite and bungalows. These proposals were some of the points that the Board of Directors of Astir took into consideration in order to select Starwood for the management of the complex. To the implementation of the above, Starwood undertook the obligation to offer Astir advices for the quality criteria (standards) that Aphrodite Hotel and bungalows must meet, so that the forecasted renovation to be made by the Management of Astir, has the right direction and aims in the particularly demanding international market of luxurious hotels. The Management of Astir estimates that the planning of the refurbishment works (including project drawings, budget, etc.) will begin after the 1 July 2006, when the obligation of Starwood to offer the relative advices to Astir will begin. After the completion of relative projects that will be done from Astir, with the advice of Starwood only in matters that concern international quality standards, the Management of Astir will be in position to determine the precise budget of relative works of renovation, the source of financing, etc. At this moment, concrete plans or project drawings regarding renovation works do not exist and, in consequence, the amount of ? 45 millions reported, constitutes an initial estimation and not a budget of their cost.