NEOCHIMIKI Group of Companies announces the successful completion of the sale, through private placement, of 16.978.729 shares of the subsidiary company LAMDA DETERGENT owned by NEOCHIMIKI L.V. LAVRENTIADIS and its subsidiary by 100% companies and issued by LAMDA DETERGENT (which represent 43,44% of the share capital of LAMDA DETERGENT) to foreign institutional investors, which were blocked at the Athens Stock Exchange according to the letter with Reg No. 12248/20.03.2006 for achieving among others a satisfying spread of LAMDA DETERGENT's shares. After the sale transaction, through private placement, NEOCHIMIKI L.V. LAVRENTIADIS will hold 50.15% from 93.59% of the share capital and respectful voting rights of LAMDA DETERGENT. More specifically 16.978.729 shares of LAMDA DETERGENT were sold through private placement via Sal Oppenheim Private Bankers, MERIT S.A. and Piraeus SIGMA DEVLETOGLOU S.A at a total amount of 68.539.488. The shares were sold to institutional foreign investors mainly from the U.K., Italy, Spain, Germany, Austria, Holland, and Belgium, a fact that comes as an affirmation of the investment community unreserved confidence towards the growth potential of the company business.

The proceeds from the private placement will be used for the materialization of NEOCHIMIKI Group of Companies strategic goals both in domestic Greek market as well as in the markets of South-eastern Europe through the development and enhancement of its five main SBUs involved in:
- production of detergents,
- production and distribution of raw materials for the paints and lacquer industry
- production and distribution of cosmetics,
- distribution of agrochemical products and
- distribution of polymers for the plastics industry.

Finally, for the year 2006, NEOCHIMIKI?s Management proceeds to a positive revision of its previous estimations. More specifically, consolidated sales are expected to rise for the year 2006 to 270 mil. over 230 mil. , marking an increase of 89.47% as compared to 2005. Earnings before taxes are expected to rise for 2006 to 28.5 mil. over 21 mil. , up by 90% in relation to 2005, the earnings after tax and minorities are expected to amount to 18.7 mil. over 17.2 mil. , marking an increase of 48.41% as compared to 2005. The above revision is due to the achievement of new collaborations and takeovers, which are already announced to the investment public, that is: collaboration agreement of NEOCHIMIKI L.V. LAVRENTIADIS S.A. with the company LUΚOIL and 100% takeover of the company MACRO B from its subsidiary LAMDA DETERGENT S.A.. Moreover, the private placement generates capital gains, which, according to the IFRS, are expected to amount to approximately 50 mil., increasing total earnings after tax and minorities to approximately 68 mil..