September 14^h, 2005

 Strong Turnaround for Financial Results during 2^nd Quarter 2005

·         ÅÂÉÔDA increase of 34% vs 1^st Half of 2004.

·         EBIT increase of 50.9% vs 1^st Half of 2004.

·         Net profit after minority rights and tax provisions at 1.6ml Euros vs loss of 324K in the 1^st Half of 2004.

·         Marginal decline of 3.7% in group turnover vs the 1^st Half of 2004.  

Petzetakis Group Turnover for the 1^st Half of 2005 reached 107.8ml Euros representing a decrease of 3.7% versus 1^st Half of 2004. In contrast however, ÅÂÉÔDA reached 12.6ml Euros in the 1^st Half of 2005 compared to 9.4ml Euros in the same period in 2004 –an increase of approximately 34%. On the same note, earnings before taxes increased to 3.2ml Euros indicating an increase of approximately 383%, while net profit for the group after minority rights and tax provisions reached 1.6ml Euros compared to a Net Loss of 324K Euros for the 1^st Half of 2004.

The strong turnaround in financial results for the 1^st Half of 2005 is primarily due to the results of the 2^nd Quarter of the year. The negative trend in sales from the 1^st Quarter of 2005 (46ml Euros in the 1^st Quarter of 2005 compared to 50ml Euros in the same period of 2004) was reversed and EBITDA and operating margins were further improved compared to 1^st Quarter of 2005(5.2ml Euros in the 1^st Quarter of 2005 4.2ml Euros in the same period of 2004; 2^nd Quarter sales were 62ml Euros (at approximately the same levels with the 2^nd Quarter of 2004); EBITDA increased by approximately 43% reaching 7.4ml Euros in the 2^nd Quarter of 2005 vs 5.2ml Euros in the 2^nd Quarter of 2004; and EBITDA and EBIT margins increased by approximately 8.4% and 4.4% respectively. 

 The improvement in operating margins is due primarily to the strong turnaround of operations in the Greek market. EBITDA increased two-fold in spite of a) the drop in production and sales caused primarily by the slow-down of the Greek economy in particular in the infrastructure sector and b) increased marketing and advertising expenses aimed to strategically promote the company’s new state-of-the-art pipe systems with superior features and unique in the market attributes (sound-leak proof). This improvement in the company’s operational efficiency in the Greek market is due primarily to the internal operating improvements of the company as well as the recovery of margins following the sale price increases implemented due to the significant raw material price increases that had reduced the 2004 margins at low levels. 

Group Sales Geographic Breakdown

Geographical Location			2005 vs 2004	% Group
	30/06/2005	30/6/2004		2005	2004
Greece	44,490	53,318	-16.6%	41%	48%
Rest of Europe	25,889	24,448	5.9%	24%	22%
South Africa	44,500	46,556	-4.4%	41%	42%
Intercompany Sales	7,026	12,349		7%	11%
PETZETAKIS GROUP	107,853	111,973	-3.7%	100%	100%

 Group sales and EBITDA in the rest of Europe increased by 6% in the 1^st Half of 2005 compared to the same period in 2004. This increase was due primarily to sales of the in the Spanish Market having increased by approximately 32% as the group’s subsidiary there successfully penetrated the constructions’ sector using the parent company’s know-how. Sales in South Africa in the 1^st Half of 2005 on the other hand decreased by approximately 4% compared to the same period of the previous year.

 ÅÂITDA Geographic Breakdown

Geographical Location			2005 vs 2004	% Group
	30/06/2005	30/6/2004		2005	2004
Greece	6,637	3,210	106.8%	53%	34%
Rest of Europe	2,404	2,281	6.0%	19%	24%
Africa	3,560	3,908	-8.9%	28%	42%
PETZETAKIS  GROUP	12,602	9,399	34.2%	100%	100%

 For the remainder of 2005, group objectives can be summarized as further improving operational results and concluding the group’s refinancing in a way that best fits the group’s financial and tax structure.  

Petzetakis Group is one of the largest pipe systems manufacturers worldwide and is the market leader in Greece and South Africa. It operates eleven manufacturing units in Greece, S.Africa, Spain, Portugal, Italy and Germany with installed production capacity of 171.000 tons.