Heracles Group of companies announced today sales of 286.9 million euros for the first semester of 2005, reduced by 3.7% compared to the same period in 2004. Sales for the second quarter of 2005 amounted to 167.0 million euros, reduced by 1.8% compared to the same quarter in 2004.

Favorable weather and demand conditions during the second quarter of 2005 mitigated the negative impact of the completion of the Olympic projects.

Exports turnover has increased by 42% during the first semester of 2005, compared to the same period in 2004. This is the result of the combination of higher exports volume and better market price. Profits before taxes amounted to 28.4 million euros for the first semester of 2005, reduced by 12.7 million euros compared to the corresponding period of last year, as a result of the aforementioned overall sales decrease of the local market as well as the increase of energy cost.

The 1st Semester 2005 financial statements have been drawn up according to the International Financial Reporting Standards (IFRS). The main impact on results concerns the method of calculating depreciation (economic life of the assets vs tax rates) as well as the presentation of taxes in the interim accounts.

HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece. One in Volos, which is the largest cement plant in Europe, one in Halkis Evia and one in Milaki Evia. The total production capacity of the Group is 9.6 million tonnes annually, which makes it the largest cement producer in Greece. HERACLES Group is also active in the production and sale of ready-mix and aggregate products.

Lafarge is the world leader in building materials, and employs 77,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of 14.4 billion in 2004.