Heracles Group of Companies announced today sales of 120.2 million euros for the first quarter of 2005, reduced by 6.3% compared to the same period in 2004. The recorded decrease of sales is mainly due to the expected declining demand of building materials as a result of the finalization of the relevant Olympic projects. The volume as well as the prices of exports marked a significant increase compared to the same period of last year.

As a result of the aforementioned sales decrease of the local market as well as the increase of fuel cost, profits before taxes amounted to ?2.9 million euros, reduced by 8.9 million euro of the corresponding period of last year.

The 1st Quarter 2005 financial statements have been drawn up according to the International Financial Reporting Standards (IFRS). The main impact on results concerns the method of calculating depreciation (economic life of the assets vs tax rates) as well as the presentation of taxes in the interim accounts.

The main change in the Group?s Net Equity, as shown in the Statement of Changes in Equity of the Group?s Financial Statements, concerns the valuation of Tangible Assets at deemed cost, based on IFRS1, which equals either their fair value, as determined by independent professional valuers following a market research, or historical cost based on the Greek Accounting Standards less the subsequent accumulated depreciation and the subsequent losses from their devaluation.

HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece. One in Volos, which is the largest cement plant in Europe, one in Halkis Evia and one in Milaki Evia. The total production capacity of the Group is 9.6 million tonnes annually, which makes it the largest cement producer in Greece. HERACLES Group is also active in the production and sale of ready-mix and aggregate products.

Lafarge is the world leader in building materials, and employs 77,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of 14.4 billion in 2004.

Lycovrissi, June 23rd 2005
For more information please contact:
HERACLES Group of Companies
George Vlachos