DIOLKOS CLOSED-END FUND S.A. (henceforth the "Company" or the "Absorbed") informs the investing public that, its Board of Directors, during its session on 31 January 2006, decided the following:

1. To commence the procedures for the merger of the Company with the joint stock company SOLVENCY INTERNATIONAL INVESTMENTS & HOLDINGS S.A., the shares of which are listed and traded on the Securities Market of the Athens Exchange, (henceforth "SOLVENCY" or the "Absorbing"), by its absorption from SOLVENCY, in accordance with the provisions of Articles 68, C.L.2190/1920 together with the provisions of articles 1-5 of L.2166/1993, as currently in forced (henceforth the "Merger").
2. To set the date for the transformation balance-sheet date to 10 February 2006.
3. To appoint a Chartered Auditor to carry out the audit with respect to determining the book value of the assets of the Absorbing and the Absorbed, auditing the relevant merger agreement draft and determining the shares' exchange ratio, according to the provisions of article 298 of the ATHEX Regulation.
4. To authorize Board of Directrors' Members in order to continue discussions with SOLVENCY, determine the shares' exchange ratio, draw up the merger agreement draft and the relevant Board of Directors' Report as well as to carry out any other legal act required within the framework of the said merger.

It is noted that the merger in question is subject to the approval of the Shareholders' General Meetings of the Company and SOLVENCY as well as the approval of the Hellenic Ministry of Development.

The Company will keep the investing public and the competent authorities informed regarding the course of the said merger.