Today Rilken S.A. publishes the financial results of 2004. The Company realized net sales of 27.200 T Euro and profit before taxes of 2.484 T Euro.

Company sales amount to 27.200 T Euro compared to 29.199 T Euro of the prior year, resulting in a decrease of 6,8%. The profit before tax amounts to 2.484 T Euro, 32,9% lower than the previous year amount of 3.703 T Euro.

The domestic sales decline versus the previous financial year mainly due to the declining market of core Hair Cosmetics. In 2004 the Rilken export business is lower by 28,2% due to the modification of the distribution network from direct sales to sales via other subsidiary companies of the Henkel Group and the high stock levels at the local wholesalers in the beginning of the year.

Additionally, in 2004 our products became less competitive in the export markets due to exchange rate of USD against Euro that has a negative impact on the sales.

The profit before taxes of the Company decreased by 32,9% and amounts to 2.484 T Euro vs. 3.703 T Euro of the last year. This change is the combined result of sales reduction, extraordinary expenses increase and the improvement of cost of sales. The increase of extraordinary expenses is mainly due to the provisions for bad debt because of the implementation of the IAS as well as due to restructuring provision. The improvement of cost of sales is mainly due to the fact that the mark up of the inventories re turned on 31.12.2002 by the affiliated company Schwarzkopf & Rilken had been incorporated in the cost of sales of 2003.

The operating expenses of the Company remained almost at the same level of the corresponding period of previous year due to the implementation of a restrictive expenses policy offsetting inflationary pressure. The Rilken Group, consisting of Rilken S.A. and its retail distribution company Schwarzkopf & Rilken Hellas S.A., recorded consolidated net sales of 30.444 T Euro, decreased by 6% compared with the corresponding period of 2003 mainly due to the above-mentioned reasons. Operating profits of the Group decreased by 542 T Euro and amounted to 3.851 T Euro. Consolidated profit before tax also decreased by 31% vs. last year and amounted to 2.762 T Euro.

Rilken S.Α. is an Athens based manufacturer and marketer of cosmetics, specialized in hair care products. The Company is a member of the Henkel Group which is the majority shareholder of Rilken S.A. via its subsidiary Henkel Hellas S.A. The Financial Statements of Rilken S.A. for the year 2004, including the Consolidated Financial Statement, will be published on 26th February 2005.