Replying to the Hellenic Capital Markets Committees letter as of 7 May 2007 regarding the consolidation of subsidiaries in the annual financial statements of 2006 (01/01/2006-3/12/22006), AXON HOLDINGS SA wishes to inform the investment community about the following:
1. The affiliated companies EVROGENETIKI SA (equity stake of 15.05%) and MEDTRONIX LTD (equity stake of 24.04%) were consolidated for the first time in the financial statements of 2006 according to the net worth method.
Our Company participates indirectly in the above companies, via its subsidiaries EUROMEDICA SA and EUROPROCUREMENT SA, which acquired 25.00% and 39.94% of the above companies respectively, within 2006.
2. Apart from the companies EUROMEDICA SA, THESSALONICA GENERAL CLINIC SA and CRETE MEDICAL INSTITUTE OF HIGH TECHNOLOGY SA, in which our Company holds direct or indirect equity stakes greater than 50%, all other medical companies included in the consolidation of 2006 (based on full consolidation method) with an ownership of less than 50%, are indirect holdings via subsidiary company EUROMEDICA SA. EUROMEDICA SA participates in the above companies with equity stakes above 50%.
3. Within 2006, tax liabilities of EUR 5.43 million concerning our affiliated companies for the period 2001 ? 2006, were finalized.