ALAPIS SA pursuant to questions set by the Hellenic Capital Market Commission, informs the investment community that the Company's tax free reserves formed in FY 2007 and are presented in the annual financial statements of the same fiscal year have been formed according to Law 3299/2004 as modified by Law 3526/2006 and concern investments realized by the Company during 2006 amounting to euro 38,216 thou., which were not used to form reserves up until this year. In FY 2007, the Company has realized investments which pertain to the specific development law amounting to euro 38,491 thou. which including the balance of 2006 will be used to form tax free reserves over the next 10 years pursuant to the provisions of the same law under which they were formed.
Moreover, the Company is emphasizing that the goodwill from the merger between LAMDA DETERGENT SA, EBIK SA and ELPHARMA SA via absorption by VETERIN SA, which appears in the FY 2007 consolidated and parent company balance sheets, has been determined based on the book values of the consolidated balance sheets of the acquired groups (LAMDA DETERGENT SA, EBIK SA, and ELPHARMA SA) as of February 15, 2007 and it is temporary. The procedure for determining the fair value of the assets, liabilities and potential liabilities of the acquired groups, the purchase price allocation under IFRS 3 "Business Combinations" and the subsequent final determination of the respective goodwill are underway, as the Group as well as the Company have made use of the option provided under the above IFRS in as far as the ability to finalize the above amounts 12 months from the acquisition date. The aforementioned use of the 12 month period in order to finalize the procedure for the purchase price allocation has been decided upon the fact of the magnitude and the large number of the subsidiaries involved in the merger, several of which are located abroad and hence will be finalized in the financial statements of the 1st quarter of 2008.