Friday, 30 November 2001

+++ Extraordinary General Shareholders Meeting: The merger with Intrasoft approved +++

A large multinational company with worldwide range and strong presence in the countries of Southeastern Europe and the Mediterranean, and with annual turnover of 350 billion drachmae at the end of 2001 will result from the merger of INTRACOM with INTRASOFT. This was stressed by Mr. Socrates Kokkalis in today's Extraordinary General INTRACOM Shareholders Meeting, which approved the two companies' merger plan.

The President of INTRACOM announced that INTRACOM Group sales in the first nine months of 2001 have grown by 26%, while earnings before interest, taxes and depreciation annex (EBITDA) have grown by 28%. Mr. Kokkalis noted that in other countries mergers bring about massive job losses. INTRACOM, however, is determined not only to retain all personnel, but to offer new jobs.

INTRACOM Group currently employs over 8.000 people. The mother company, INTRACOM, has 3.100 employees and Intrasoft 1.000. In the new INTRACOM over 50% of personnel holds a university degree. The merger of INTRACOM with INTRASOFT is a response to the challenge of the global economy for the creation of strong businesses, with the size sufficient to withstand the ever-intensifying competition, stressed the President of INTRACOM. And he underlined that there will be major operational gains, given the complementary character of the two companies' activities. The business colossus that will result from the merger in the field of telecommunications and information technology will be the largest of its kind in the region of Southeastern and Central Europe, the Middle East and North Africa. Annual turnover will reach 350 billion drachmae and profits will reach 50 billion drachmae by the end of 2001.

According to the approved Merger Contract Plan, 14,898,922 new Common Registered INTRACOM shares will be issued, which will be credited to INTRASOFT SA shareholders at the parity rate of 1 INTRACOM share for every 2.1019 INTRASOFT SA shares. INTRACOM shareholders will retain the number of shares they already possess, at the readjusted nominal value of 718.9825 drachmae per share, up from 700 drachmae.

Mr. Socrates Kokkalis also announced the partnership of the Athens Technological Institute, founded by INTRACOM, with the American university Carnegie Mellon, a leader in Information Technology. According to an agreement which has already been signed, the degrees conferred by the Institution will be recognized by Carnegie University as Master's degrees in specialties of the fields of Telecommunications and Information Technology. The building of the Institute at INTRACOM's Paiania facilities will be completed in the beginning of 2002 and the Institute will commence its operation in September 2002 with 100 students from Greece and Southeastern European countries. The Institute's graduates will enjoy INTRACOM's guarantee of employment in the company and in the field of their specialty.

In the conclusion of his speech, Mr. S. Kokkalis pointed out that business collaboration or cooperation with Hellenic Telecommunications Organization (OTE) and possibly with other Greek businesses in the field, will create a large group with strong presence abroad. The results will be beneficial not only for the companies involved, but for the Greek economy in general, something which should be taken into consideration by both the government and the opposition.

Friday, 30 November 2001