Our Company during the year 2004 achieved an increase in sales turnover of 11.2% (or 1.546.016,36 euro) with profit before tax of 1.817.342,25 euro, which showed an increase compared to the profits of 2003 by 72.367,81 euro. There exist two main reasons that explain the increase in sales turnover:

a. the increase in market share nationally, +1,0%
b. the successful marketing campaign we launched this year and the branching of our products compared to that of last year

Profit before tax showed a positive increase of 4,1%, and profit before depreciation increased by a notable 386.803,37 euro, 18,7%. Our financial results, between 2004 and 2003, showed major differences due to the following:
1. The positive increase of gross profit, from 49,2% in 2003, to 51,3% in 2004, which is due to the a) positive impact of the dollar which decreased the overall purchase price b) and the continuous strives by the purchasing department to achieve lower buying prices.
2. Selling expenses increased by 691.200,52 euro (+18,3% compared to that of 2003), due primarily to the increase in our marketing campaign budget and the increase in depreciation expense due to the operation of our new Logistics Center. Selling expenses showed 29,1% of sales turnover compared to 27,3% in 2003.
3. Administration expenses increased by 340.275,67 euro (+33,7% compared to that of 2003) which is due only to the increase in depreciation expense. Administration expenses showed 8,8% of sales turnover compared to 7,3% in 2003.
4. Financial expenses increased due to the financing of the company's investments during 2004. Interest expenses showed an overall 201.052,30 euro in 2004 compared to 177.278,04 euro in 2003, in increase of 23.774,26 euro.
5. Extraordinary & non-operating results showed a positive 80.653,77 euro compared to that of 203. The reason stems from the positive impact of the foreign exchange rate of the USD$.
6. During 2004 we see an increase in depreciation compared to that of 2003 by 314.480,56 euro (+96,3%) The increase in depreciation during the year 2004 is due to that fact that the new company offices were depreciated for all of 2004, and in 2003 the new company offices were depreciated only from August 2003.

During 2004 our company maintains the position of the leading Greek company in the toy market, with a wholesale market share of 9,0%, which we aspire to increase in the coming years. We continued to invest and improve all our toy lines in order to achieve increased sales and market share in the years to come. Our Company continuously answers to the new fashion trends of the toy market and our strategy for 2004 was threefold A) to increase our product line of the brand name Disney Princess B) focus on products that are music oriented C) and invest in products that are geared to soccer. We were on target with all three strategies. Our expansion of the Disney Princess line brought about our new successful cooperation with Vivid, well-known English company. Our attention to the music sector brought about our Karaoke line, geared to a young audience. Lastly, we presented three new products that deal with soccer under our brand name Paiktaras. AS Company also introduced Disney Heroes in order to cover the category Play Sets for boys, Peter Pan's Pirate Ship and The Island of Captain Hook,which were two of the loved items during Christmas 2004.

During 2004 AS Company presented two new category's TV GAMES PLUG AND PLAY, which is our entry in the computer games market. The products TV GAMES PLUG AND PLAY are electronic games that are hooked up to your television set, such as PACKMAN, SPIDERMAN and others. As well during 2004, we also introduced the CLEMMY line, which is soft cubes for ages up to 36 months. AS Company intends to expand its baby line during 2005.

During 2004 our company entered the European market. With our Paneuropean contract with Warner Bros. we will distribute Computers for Children with Batman and other Looney Tune heroes. We expect results to starting showing during 2005 and our strategic entrance internationally. During 2004 exports showed a substantial increase of 3,3% compared to that of 1,9% in 2003

During 2004, and after many quality inspections, AS Company received from ELOT the right to enforce on its products the "TESTED PRODUCT" sign. This sign shows our customers that our products have them in mind, because we believe in developing a quality product.

The Company's Management Team has set increased profit levels for 2005, which will surpass 2,6 mill. euro (profit before depreciation and taxes),something that will improve the profitability of the total engaged capital.