During Q1 2004, IONIAN HOTEL ENTERPRISES posted losses of Euro 2,4 million compared to losses of Euro 2.6 million last year. Increased interest payments of Euro 1.2 million compared to Euro 0.3 million last year contributed to this result, due to increased indebtedness during the year.

Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) amounted to Euro 469 thousand during Q1 2004, compared to losses of Euro 987 thousand last year. Moreover, turnover increased to Euro 7.1 million from Euro 2 million. The improvement is attributed to the full operation of Athens Hilton, offering high quality services following the recent renovation.

Results are expected to improve taking into account the publicity to be gained by both Athens Hilton as the official hotel of the International Olympic Committee and Greece for hosting the Olympic Games, and its effect on tourism growth in the years to come.