Responding to your letter dated October 27th 2006, protocol number 50997/27.10.2006, we would like to inform you about the following:
1. The condensed financial statements on a consolidated basis, represented in the Annual Report of Fiscal Year 2005 of our Company, are prepared in accordance to article 8 of the 5/204/14.11.2000 Rule of the Hellenic Capital Markets Committee.
2. In particular, as regards the condensed financial statements of the subsidiary company Hospital Affiliates International SA, that were prepared for the consolidated results of the Athens Medical Center SA, the shareholders equity of the above subsidiary is negative on December 31st 2005. As a result, and given the above fact, articles 47&48 of Greek Law 2190/1920 are applicable, as it is also clearly stated in note 7, page 122 of the Annual Report.
3. Against the decision of the court of appeal, has been filed in due time a cassation with the Supreme Court (court de cassation) and its hearing will take place in March 2007. We strongly believe that in view of its severe legal faults and its insufficient reasoning of the decision of the court of appeal our cassation in front of the Supreme Court will be successful. In any event, the final result of the hearing will not have any impact on the parent or consolidated results of the Athens Medical Center SA, as it is stated in note 3, on page 116 of the Annual Report.
4. As a result we believe that the annual results of the listed company Athens Medical Center SA, on a consolidated basis, which have been prepared in accordance to International Financial Reporting Standards (IFRS), and stated in the Fiscal Year 2005 Annual Report of the Company, include all and accurate information for all activities of the Company and meet all requirements of the 5/204/14.11.2000 HCMC Rule. In addition, in the above mentioned annual report additional information has been included in order for investors to form a full and accurate opinion about the financial condition of the Company.