2008

31/03/2008 - Announcing its annual 2007 financial results in accordance with International Financial Reporting Standards (IFRS)

Hellenic Industry of Plastics and Rubber, Aristovolos G. Petzetakis S.A. (the Company) announces its annual 2007 financial results in accordance with International Financial Reporting Standards (IFRS):

1.      Total Company revenue was at Euro 34.7 mln from Euro 50.6 mln for the 12 months ended 31.12.2006, whilst on a consolidated basis Group revenue was at Euro 167.9 mln against Euro 182.2 mln for the fiscal year ended 2006. The Company’s EBITDA showed a loss of Euro 0.6 mln against a positive Euro 2.6mln for the previous year, whilst on a consolidated basis Group EBITDA was at Euro 8.6 mln against Euro 11.8 mln in 2006. The consolidated Group losses after tax and minority rights were at Euro 7.1 mln in 2007 against losses of Euro 29.6 mln in 2006.

2.      We note that the Company, due to its overdue debt obligations during the period ended 31.12.2007, was operating with extremely restricted financial liquidity which significantly reduced its commercial activities. After signing the Memorandum of Understanding dated 28.6.2007 relating to its debt refinancing and restructuring and the issue of a Euro 7mln interim bond loan in August 2007, the Company showed a marked improvement of 36% in its revenue during the second half of 2007 in comparison to the first half of the year and in its EBITDA, which turned positive in the second half of the year.

3.      At the consolidated Group level, in addition to the negative impact from the Company, revenues were also adversely impacted by a 13% currency devaluation in the South African rand (the currency of our South African subsidiary), which largely offset a 16% increase in revenue at our South African subsidiary. Despite the reduction in Group revenue, EBITDA at the consolidated Group level after adjusting for one-off expenses (totaling Euro 3.7 mln and related to refinancing expenses at the Company level and legal settlement and write-down costs at our South African subsidiary) was at Euro 12.2 mln in 2007 vs Euro 11.8 mln in the previous year. The above result was positively influenced by the contribution of our South African subsidiary, which more than doubled EBITDA in 2007 vs 2006.

4.      With respect to Total Net Worth (the TNW) at the consolidated Group level, which appears negative by Euro 5.3 mln, we note that that this reduction is due to the significant write-downs in the value of shareholdings and in bad debt write-offs taken during 2007 and we expect TNW to become positive again following signing of the Euro 122 mln refinancing and restructuring agreement at the Company level on 28.1.2008, which includes convertible bond loans totaling Euro 42 mln, of which Euro 5.8 mln are mandatorily converted within 1 year of issue as per the relevant bond programme terms.

5.      Finally the issue and the full subscription to the bond loans under the above mentioned refinancing and restructuring agreement at the Company level was completed on 22.2.2008, which means that March 2008 was the first full month during, which the Company was able to operate with an adequate financial liquidity position after a very long time. Management is aiming to restore the Company’s commercial activities to levels which are more in line with its production base and which, in conjunction with the significant operational improvements which have been made, will lead to a gradual and stable improvement in operating results.

6.      The 2007 Summary Results and Information for the Company and the Group, which were published as required by law in the newspapers “Imerisia”, “Vima” and “Attiko Vima” on 31.3.2008, will be published in a corrected version in the same newspapers on 2.4.2008.

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