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Regarding the article published in the newspaper AXIA on 18/11/2006 the company wishes to declare to following in order to fully brief the investment public on the matter: The purchase-sale of the company KENTFORD in Moldova (2001) was never completed since - as it was explicitly mentioned in the contract - we had the right to rescind the contract. The purchasing value was USD 200,000. If the contract had been completed and only in that case did the contract provide for a per kilogram of exported walnut kernel fee (commission of 0.10 to 0.60 cents per kilogram) of up to USD 6,600,000 within eight years. This commission regarded the assurance of exporting licenses from Moldova and the submission of quantities from producers and it would be lawfully paid. The suggestions that the company''s value amounts to USD 7,000,000, are in no way true and the company reserves the right to use any lawful means in order to safeguard its reliability and its prestige. During the relevant controls, our company realized that the sellers were incapable of fulfilling the pledged terms and of assuring the success of the business plan through fully-accepted legal means. Following that realization, and given that it was provided for in the contract, we rescinded the contract. At the same time, we decided to cease all activities in Moldova as exporters, due to the insecure political and business environment in the area. Note that the contract provided that in case of its non-completion there would be no possibility to claim any kind of compensation. Regarding the suggestion on the difference of prices between exports from Moldova and imports into Greece, (the validity of which is being checked according to the newspaper), we declare the following: The Values Department of the Greek Customs as a settled policy adjusts the customs values according to the prevailing international higher values only for the collection of importing customs and the VAT. This settled policy was also adopted during our imports from Moldova before 2000, where due to the fact that we had privately-owned facilities and we purchased directly from producers, our cost price was lower than that of prevailing international prices (USA). Our prosecutor accused us of that, our company was controlled by the competent tax Greek authorities and as expected the accusation was not substantiated. We also question ourselves why the prosecutor claims compensation five years after the incident. Finally, we believe that contests in law are not won through announcements but in the courtroom. Our company will continue to inform the competent authorities and the investment public on any developments on this false lawsuit.

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