Thursday, August 29, 2001

+++ INTRACOM GROUP:
Significant increase of financial figures in the first semester of 2001 +++

Sales: 146.0 billion drachmae +35%
Earnings before interest, taxes and depreciation annex (EBITDA): 37.6 billion drachmae +26%

INTRACOM Group financial figures show impressive growth for the first semester of 2001. Specifically, according to the consolidated financial statements, INTRACOM Group of companies' sales in this period reached 146.0 billion drachmae compared to 107.9 billion drachmae for the respective semester of 2000, marking growth of 35%. Earnings before interest, taxes and depreciation annex came to 37.6 billion drachmae, compared to 29.7 billion drachmae in the first semester of 2000, marking an increase of 26%. At the same time, the Group's pre-tax profits were 23.1 billion drachmae compared to 20.3 billion drachmae in the same period of 2000, a growth of 13%.

According to the consolidated financial statements of the first semester of 2001, total assets reached 506.3 billion drachmae, having grown by 21%, confirming the INTRACOM Group's leading position in Greek industry. This development of financial figures for the first semester of the current year confirms the predictions of the company's management for the exceptionally positive progress of the INTRACOM Group in 2001, despite the unfavorable international conjuncture which has considerably affected high technology companies.

Sales of the parent company, INTRACOM, grew by 25% and reached 113.6 billion drachmae compared to 90.9 billion drachmae in the first semester of 2000. Earnings before interest, taxes and depreciation annex (EBITDA) came to 25.7 billion drachmae compared to 20.8 billion drachmae for the same period in 2000, a 24% increase. At the same time, pre-tax profits grew by 22% and reached 20.1 billion drachmae compared to 16.5 billion drachmae for the same period in 2000. It is noticeable that exports in the first semester of 2001 reached 47.3 billion drachmae, 42% of sales.

Furthermore, since the beginning of 2001 the Company has signed new contracts, worth approximately 90 billion drachmae, which largely concern exports, mainly to Sweden, Serbia, Russia, Hungary, Norway, Rumania, Jordan, Nepal and Albania, and also the domestic market. Following these, the remaining balance of the company's orderbook is approximately 500 billion drachmae. This fact strengthens the company's predictions for considerable growth rates in the coming years.

INTRACOM's investment activity continued at a rapid pace in the first semester of 2001 as well. It is indicative that, as is noted in the published concise accounting statement, INTRACOM has already spent for the financing of its investment program for the 1999-2001 three year period, 56.4 billion drachmae from the 60 billion drachmae drawn from the company's share capital increase through the public share issue held in August 1999; a rate of approximately 94%.

Finally, a reminder that according to the proposal of the management of INTRACOM and INTRASOFT to their Directors Boards, the two companies will merge through the absorption of INTRASOFT by INTRACOM. Already, from the 27th of July, 2001, the Directors Boards of the two merging companies INTRACOM and INTRASOFT SA have approved the relevant Merger Contract Plan, which has been submitted to the SA Register of the Ministry of Development. The merger, which will be completed by the end of the year, will lead to the creation of a capitally strong company presence in the field of telecommunications and information technology in the wider S.E. European region.