Over the fiscal year 2004, MINOAN LINES managed to more than double its net profit despite the drop in traffic observed in the Adriatic as well as the domestic routes especially in the summer months during the Athens Olympics period.

The Company's strategy focusing in cost containment and the fleet rationalization after the sale of the two vessels that led to higher utilization rates and significant drop in debt obligations, were the driving factors for the increased profitability for 2004.

Parent Company
Parent Company revenues decreased marginally by 1.1% reaching euro 191.5 million versus euro 193.6 million in 2003, while operating profits (EBITDA) reached euro 60.0 million against euro 53.2 million increased by 12.2%.
Operating profit margin (EBITDA margin) rose by 3.8 basis points to 31.3% from 27.5%. Interest expense decreased by 12.2% to euro 27.2 million from euro 30.9 million in 2003. Net profit increased by 166.2% to euro 9.5 million from euro 3.6 million in 2003 while earnings per share stood at euro 0.13 versus euro 0.05 in 2003.
The increased profitability allows MINOAN LINES' Board of Directors to propose to the Annual General Meeting on June 12, 2005 that a dividend of euro 0.10 per share be paid (from euro 0.02 per share for 2003), a dividend yield of 5.2%.

Group
The consolidated turnover dropped marginally to euro 192.2 million versus euro 194.3 in last year's period, while operating profits (EBITDA) rose to euro 60.3 million over euro 53.4 million in 2003 increased by 12.8%. EBITDA margin increased by 3.9 basis points to 31.4% from 27.5% in 2003. This strong performance led to an increase by 121.9% in consolidated net profit after minority interest to euro 9.5 million from euro 4.3 million in the 2003.

Traffic statistics
In 2004, despite the fewer number of sailings by 13.0%, for MINOAN LINES' vessels in the Greece - Italy sea routes, the rearranged fleet and the increased sales efforts lead to higher utilization rates and increased market shares.

Market shares - Adriatic Sea
Passengers Cars Trucks
2004 2003 2004 2003 2004 2003
24.3% 22.1% 28.7% 26.1% 20.5% 22.4%

In total the Company carried in 2004, 1.65 million passengers, 238 thousand cars and 165 thousand freight units, with fewer number of sailings by 8.5% versus 2003.

2005 - prospects
Following the strategy focusing in core shipping activity, the company proceeded in February 2005 to the sale of its stake of 6.81% in Aegean Airlines and at the same time increased its stake in Hellas Flying Dolphins by 1.72% bringing its total to 33.31%.

The competitive advantage of MINOAN LINES' fleet, illustrated by the high operating margins achieved, enhances our estimates for further growth in profitability in 2005.