The first semester 2005 was completed with an increase of the net profits for STELIOS KANAKIS Anonymous industrial and Commercial Company, which focuses on the commerce of raw materials of pastry-making, bakery and ice-cream.

The most remarkable element of that period was that during the second trimester 2005, the company achieved to reverse the profits downward trend (presented during the first trimester), confirming the management?s previous estimations. Specifically, from the interim financial reports concerning the period January 1st-June 30th 2005, drawn up according to the International Standards of Financial and Economical Information, arise the following: The company's turnover ascended to euros 6,419 millions presenting an increase of 2,95% from euros 6,235 millions during the corresponding period in 2004. The profits before taxes arose to euros 690 thousand from euros 680 thousand during the corresponding semester of 2004.

The net profits (after taxes) increased by 3% ascended to euros 457 thousand from euros 444 thousand during the corresponding semester of 2004. The functioning of the company is marked by strong cash flows. The last ones increased to 10% even if cash outflows occurred for the investment implementation. More specifically, during the first semester 2005 investments took place for the buying of fixed equipment of euros 548 thousand for the construction of the new building facilities (installations) to Thessaloniki, which formation continues with rapid rates. The company conserves a strong capital structure, as the liabilities (long term and short term) do not exceed the 1/3 of the total capital and reserves

STELIOS KANAKIS SA is being intensively prepared for the functioning of the new privately owned storing installations, in Thessaloniki area (VIPE Sindos). From the diversification of its activities in Northern Greece, which will be reinforced by the aforementioned installations? functioning, additional profits are expected for 2006.