Announcement

Further to your letter, on the examination of the delisting of the company's shares from the stock exchange, the Management Company announces the following:

Since 2012, the company has entered into a debt financing and debt restructuring agreement with the creditor banks for existing loan agreements. This agreement provided that the definitive restructuring agreement would have been completed by March 2013, with a standstill at the same time showing that the existing debt obligations had not been terminated for that period.

In the period from 2012 until today, the catastrophic flood in February 2013 affected the main production unit of the parent company and resulted in the company not recovering since it suffered substantial material damage and loss of customers.

All this time and until now, despite the efforts of the Management, it was not possible to reach any agreement for the parent company regarding the regulation of its debt obligations.

As a result of the non-servicing of the loans, after the first quarter of 2016, the phasing out of all the loans of the parent company began with the largest volume being denounced in 2017. At the same time, auction dates were determined for the fixed assets of the company in February 2018.

The company does not engage in any activity and therefore no longer employs employees.

The publication of the financial statements is not feasible at this stage, based on the above developments, while at the same time the company's Management is assessed by the accounting principle with which it will be published.

1. Kilkis Spinning SA: The company has not yet reached full production capacity, after being subject to the Article 106b reorganization process.

2. Thessaly Ginning Mills SA: It has seasonal operation and this year (September-January) operates on behalf of third party (façon).

3. Hellenic Energy SA: The company has no operational activity and the photovoltaic installation license has expired.

4. Blu Cotoni: (trading company based in Tunisia). The company is operationally inactive since 1/1/2017.

In conclusion, the existing operation of the subsidiaries is not sufficient to improve the parent's financial position.

With regard to the shares of the subsidiaries, the percentage of which are pledged, the procedure envisaged for the liquidation of the assets of the parent company will be followed.

Based on the above, it is not possible to reactivate the operation of the company, and consequently it is not possible to renegotiate its share.

In the event of an ATHEX decision. the Company's Management intends to retain its shares in immaterial form and to register them in the electronic files of "Hellenic Central Securities Depository SA" to facilitate the shareholders.

Shareholders' contact with the company will continue to be made on the website www.hellenicfabrics.gr, while Mr. George Virozis remains the contact person.