The Group of HELLENIC FABRICS S.A. for the first quarter to 2006, keeps on maintaining its profitability and improving its capital structure despite intense competition, which in combination with the rise of the euro versus the US dollar, influences European export oriented companies negatively. In the financial statements of the first quarter of 2006 published on 31/05/2006 consolidated turnover amounted to Euro 24.5 mln, improved by 0,90% in comparison with the correspondent period of 2005, and originates by 75% from exports. In line with the application of its strategy, the company continues to broaden its customer base and to expand sales to new markets. As in 2005, commercial policy focused on the promotion of new and innovative fabrics of a high sale price, whilst limiting the production of others that did not contribute a satisfactory profit margin. Simultaneously, it proceeded to increased sales of ginned cotton abroad that do not share similar profit margins as that of denim fabrics. Consolidated profit before tax amounted to Euro 1.57 mln from Euro 2.61 mln in the correspondent period of 2005, showing a decrease of 39,81%, while profit after tax and minority rights amounted to Euro 1.00 mln from Euro 1.85 mln in 2005, showing a decrease of 45,72%. Profit before tax, interest and depreciation (EBITDA) amounted to Euro 3.77 mln, thus 15,40% of turnover, reduced by 21.86%. Moreover, at a consolidated basis, total shareholders? equity amounted to Euro 84.43 mln from Euro 82.15 mln on 31/12/2005. The consolidated positive operating cash flow amounting to Euro 6.87 mln, assisted liquidity and was used for the self-financing investments in production activities by Euro 1.02 mln and for the reduction of total loans outstanding by Euro 6.21 mln. Finally, the ratio "Price to book value" ratio (P/BV) amounted to 0.57. The Board of Directors will propose to the Ordinary General Shareholders Meeting, which will be held in the 21st of June, a dividend distribution of Euro 0.10 per share, increased by 11,1%. Based on the closing share price on the 30.05.2006 the dividend yield arises to 3,34%. Moreover, the aforementioned General Meeting will decide regarding a buy-back share program in accordance with article 16, paragraph 5 of the L.2190/1920. The Management expresses a conservative provision for the year-end that sales will increase and the fall in profits shown in the first quarter of 2006, will be constrained.