Peania, August 28, 2002 · Lavipharm Group's profitability continued its positive performance during the second quarter of 2002. As a result, consolidated profits before taxes and after minority interest reached ? 4.2 million in the first half of 2002 from ? 3.5 million in the corresponding period of 2001.

The Group's own sales also increased by 10.8% reaching ? 109.6 million from ? 99.0 million in the first half of 2001. A key factor that contributed to this growth was the strong performance of the subsidiary Lavipharm Alliance Sante which showed a turnover increase of 24.3%, reaching ? 67.6 million compared to ? 54.4 million in 2001.

Administration expenses, as a percentage of own sales, decreased by 5.9% while distribution expenses, again as a percentage of own sales, decreased by 10.5% in the first half of 2002, confirming once more the commitment of Lavipharm Group's Management to further compress these expenses.

?The positive results of the first half of 2002 in a business environment that is affected by a worldwide economic crisis, confirms our strategic choices and sets new bases for an even more creative, effective and profitable future?, stated Dr. Athanase Lavidas, President and CEO of Lavipharm Group.

The financial results of the listed company of the Group, Lavipharm SA, were also positive. Profits before taxes reached ? 3.4 million compared to ? 3.1 million in the first half of 2001, noting an increase of 9.7%, while Lavipharm SA's own sales reached ? 14.6 million. The percentage of exports, which exceeded 55% of Lavipharm's own sales, demonstrates the company's international orientation and strong presence. Finally earnings per share increased by 9.7% compared to the first half of 2001.

Lavipharm is the largest integrated Group of companies in the development, production, import, promotion and distribution of pharmaceutical and dermocosmetic products in Greece with a strong international activity. In 2001 Lavipharm's turnover reached ? 290.6 million.