2002 was a significant year for MICHANIKI SA, both in terms of the group's growth and strategic decisions that set the stage for improved prospects ahead.

As regards financial results, turnover grew 35% and reached 71.2 million euros from 52.7 million in 2001. Operational and extraordinary earnings rose by 28.6% and reached 8.9 million euros versus 6.9 million in the respective period a year earlier, the result of improved profit margins and operational cost containment.

As part of its strategic decisions, MICHANIKI SA for the first time opted to depreciate goodwill amounting to 2.0 million euros, related to several companies it absorbed during the course of 2002. These acquisitions were part of the MICHANIKI group's active investment programme which included the absorption of 6 companies with an eye to obtain the class 7 construction licence in the framework of law 2940/2001.

MICHANIKI SA's pre-tax profit for fiscal year 2002 were reduced by the amount of the above depreciation and reached 5.5 million euros compared to 6.1 million euros in 2001 (without depreciation charges).

As a result of the decision to depreciate goodwill strengthen MICHANIKI's financial structure, management will propose to the annual shareholders meeting that no dividend be paid for fiscal year 2002 - a prudent move in view of the adverse economic climate internationally.

It should be noted that MICHANIKI SA's has zero long-term liabilities of any kind, and that the company has no bank debt, enjoying healthy cash flows and liquidity.

As regards the group's order book of yet uncompleted construction projects, which amounts to 300 million euros, MICHANIKI is currently involved in six Olympic Games construction projects out of a total of 12 projects it is working on. Having more than doubled its order book compared to 2001, the company is confident it will deliver improved financial results in the current year.

On a consolidated basis, the MICHANIKI Group's turnover rose by 3.9% to 119.8 million euros in 2002 from 115.3 million a year earlier. Operational and extraordinary group earnings rose 0.7% to 16.2 million euros from 16.1 million in 2001. Group pre-tax profit after minorities reached 11.5 million euros last year versus 11.6 million in 2001. As was the case at a parent company level, group earnings were affected by the depreciation of goodwill after the absorption of acquisitions during the year.

At a group level, long-term liabilities were reduced significantly to 238,000 euros in 2002 from 1,0 million a year earlier.

The year that passed was a crucial one for the future course of MICHANIKI as important decisions were taken and more than 22 million euros were spent to acquire nine construction companies to ensure the group secures the highest grade building licences.
Management took bold steps to fully acquire the share capital of these companies, thus ensuring the group's autonomous course in the construction sector's newly evolved landscape. Moreover, securing the 6th and 7th construction licence grades will set the stage for a leading role in undertaking large public works projects.