FORTHnet SA reports results for the 1st Half 2006:
- Market Share of new additions for ADSL subscribers has exceeded 26% for the 2nd quarter of 2006.
- Strong increase in ADSL subscribers (+243%).
- Increase in recurring revenues (+14%) with Internet recording the strongest growth (+43%) and a corresponding increase in subscriber acquisition costs (+Euro6.7m).
- The pace of the deployment of our own broadband infrastructure is accelerating. The deployment is aiming to increase the revenue and reduce the cost of offering double play and triple play services to our customers.

Α. Rapid expansion of subscriber base:
FORTHnet is continuously increasing the number of subscribers as its goal is to maintain significant market share in the ADSL market. According with the data published by NRA, the total number of active ADSL subscribers in Greece by 30/6/06 was 283,046. Therefore FORTHnet market share stood at 22.51%.
In the 2nd quarter of 2006 the company has increased its market share on the new addition of ADSL subscribers.
The increase in ADSL subscribers for Q2 06 exceeded the net additions recorded in Q1 06 and represents the largest increase in broadband subscribers for the Company in a single quarter.

B. 1st Half 2006 Results:
During the 1H '06, the adjusted total revenues recorded an increase of 13.3% to Euro49.1m from Euro43.4m in 1H '05. The strongest growth was seen at the Internet Access that increased by 42.9% to Euro9.7m.
Due to the significant increase in net additions of broadband users, subscriber acquisition costs for broadband and telephony reached Euro7.4m for the period, from Euro683k in 1H '05. Reported EBITDA decreased from Euro6.9m in 1H '05 to Euro328k in 1H '06. Adjusted for subscriber acquisition costs, EBITDA for the period increased marginally to Euro7.7m from Euro7.6m in 1H '05. Net result after tax and minority interest stood at a loss of Euro5.7m compared to losses of Euro268Κ in 1H '05.

C. Capex Programme:
The company is continuing with the implementation of its investment plan.
It is deploying an integrated broadband network using Local Loop Unbundling.
In parallel the company is constructing metropolitan fiber networks in order to interconnect the local exchanges where there is collocation and the network nodes. The aim is to reduce the telecom related costs and improve margins.
By the 30/6/06 the company has registered its interest for collocation in 73 OTE exchanges. Of these, OTE has already constructed and delivered access to 10 exchanges mainly in the Athens and Thessaloniki region. Also 12 Km of MAN fiber has been constructed.

FORTHnet is anticipating that the pace of the deployment of its own broadband/ unbundling infrastructure will accelerate. In particular by the end of August '06, the company has registered its interest for collocation in 150 OTE exchanges, representing 66% of Greece's total fixed lines and the core of FORTHnet's targeted customer base. Of these, OTE has already constructed and delivered access to 21 exchanges mainly in the Athens and Thessaloniki region, covering 1 million lines, representing 16% of the total fixed lines in Greece. The company is currently installing the required active network equipment and works are estimated to be concluded by the end of October 2006. The company estimates that 20 additional exchanges will have been constructed by the end of 2006 and the remaining 109 centres will become gradually operational by the 3rd quarter of 2007. Also by the end of August 40km of network had already been constructed in the area of Athens, while the construction in Thessaloniki is commencing. By mid November '06, it is expected that the main points of presence of FORTHnet in the area of Athens will be interconnected along with the OTE exchanges available for collocation at that time. FORTHnet is Greece's largest non-state owned broadband operator. It provides data, Internet and fixed line telephony services to more than 400,000 residential and corporate customers.