Monday, 30 June 2003

+++ S. Kokkalis at the General Annual Assembly:"We are proud of INTRACOM" +++

During his speech at INTRACOM's General Annual Assembly on June 30th, 2003, the Chairman of the Group, Mr. Socrates Kokkalis, discussed the company's dynamic contribution to the Greek economy as well as its ever expanding international presence.

Mr. Kokkalis referred to the continuous war launched against INTRACOM and his own person, pointing out that these attacks can only explained in the realms of Freudian parapsychology, simply because these attacks are not orchestrated by business competitors. He also stressed INTRACOM's achievements in employment, research & development, corporate social responsibility and education through the Athens Information Technology Institute (AIT).

Furthermore, INTRACOM's Chairman, referring to the Group's dynamic presence within the Greek and international business arena, stated:

- Despite the fact telecommunications companies internationally have presented a reduction in sales by 30% and an average reduction of their workforce by 20% with a total of 150,000 dismissals, the INTRACOM Group not only did not proceed with personnel cutbacks but, on the contrary, increased its workforce by 4% in this way, the Group confirmed once more its powerful standing and essential contribution in promoting employment. INTRACOM is ranked first in Greece among 70 employer industries in the number of employees, according to a relevant ICAP report.

- INTRACOM exports products and technology in more than 55 countries around the world, continuously expanding its presence. Exports cover 45% of its annual sales turnover.

- Despite the current recess in the field of High Technology, INTRACOM constitutes one of the three companies worldwide which maintains its capitalization at a higher level compared to 1996, after Cisco and Nokia. The company is ranked third in Greece with respect to profits.

Regarding the attacks launched against both himself personally and INTRACOM, Mr. Kokkalis pointed out:

- "Certain Mass Media as well as members of the Greek Parliament refer to us as "national suppliers" with a view to scorning and degrading us. We our proud that we are indeed national suppliers of High Technology, since we have succeeded in becoming one of the greatest European industries in a field which was non-existent a few years ago in Greece. We are in fact the opponents of this country's bribe-takers".

- "These accusations resemble bursting bubbles, created in "mud-producing labs". The behavior of their instigators exceeds the boundaries of science fiction. We are dealing with a situation of Freudian parapsychology".

- "Their attacks are not limited only in Greece, wherever INTRACOM is active, but also spread, where they have set up "mud-producing labs, in their effort to create an international commotion."

- "During the period 1988-2002, INTRACOM has realized 8-billion euro sales. Cash flow from the Greek Public Sector came to 3,5 billion euros, thus exceeding 45% of our annual turnover. This constitutes a plausible reply to those who name us a government-funded company".

Mr. Kokkalis also underlined the importance of the Athens Information Technology Institute (AIT) in fostering the development of highly qualified executives; the Institute is an INTRACOM achievement in cooperation with the leading American university Carnegie Mellon. Additionally, he reported there is an enormous interest in AIT not only from the Balkans, South-East Europe and Cyprus, but also from Lebanon, Jordan, Argentina and Peru.

With regard to the 2002 financial results, Mr. Kokkalis stated:

- The sales of INTRACOM Group rose to € 800.6 million. Profits before interest, tax, depreciation and amortization (EBITDA) came to € 209.5 million, while profits before tax amounted to € 100.4 million.

- Group assets total € 1,616 million, validating INTRACOM Group's leading position among the Greek industries. The shareholders equity amount to € 686 million, an exceptionally large figure for Greek standards, thus confirming robust financial standing of the Group, which is ranked sixth among listed, excluding those of the banking sector.

- At corporate level, INTRACOM (the mother company) sales rose to € 687.1 million. Profits before interest, tax, depreciation and amortization (EBITDA) came to € 177.9 million, while profits before tax amounted to € 102.8 million. On December 31st, 2003, the signed project backlog amounted to € 1,320 million.

- In 2002, the expenses for researching and developing INTRACOM products reached € 65 million, while corporate investments totaled € 66 million. The company's workforce amounted to 3,776 employees.

Furthermore, the General Assembly:

- Approved the distribution of dividends at € 0,20 per share, which corresponds to a yield of 4% per share.

- It elected a new 9-member Board of Directors, comprising of:
Mr. Socrates Kokkalis, Mr. Konstantinos Dimitriadis, Mr. Konstantinos Tsoukalidis, Mrs. Feroniki Tzavella, Mr. Georgios Deligiannis, Mr. Georgios Anninos, Mr. Dimitrios Klonis, Mr. Christos Chalkias, Mr. Dimitrios Chatzigrigoriadis.