"The year 2004 has been a landmark for our Group, as it is within this year that the first general restructuring of INTRACOM since its founding, has taken place", said Mr. George Deligiannis, Managing Director of INTRACOM, during today's Extraordinary General Assembly of the Company?s shareholders. Mr. Deligiannis stressed that the goal of the restructuring is the successful transition of the Group to the realities of the new millennium and reinforce competitiveness along the following:

• Corporate strategy,

• Corporate and management culture,

• Product strategy and R & D priorities

"We are introducing a policy of strict financial management to all levels of the Group including balance sheet cleaning, cost cutting, outsourcing, and redefinition of business practices", said Mr. Deligiannis and he emphasized that there has already been a deceleration in the rate of decrease of sales and earnings, in relation to the image presented by the first two quarters, reflecting upon the positive results of the third quarter.

About INTRACOM parent company's headline financial figures, it is announced that:
1. Parent company turnover for the period Jan-Sep 2004 reached euro 350 m, lower by 3.2% compared to the 2003 respective period.
2. INTRACOM parent company EBT are expected to reach euro 27 million in 9M04, from euro 34.2 million in 9M03. It is mentioned that in 9M03 EBT figures a euro 5.6 million dividend received by Vodafone-Panafon was included.
Therefore, EBT figures for 9M04 seem comparable with those of the respective period in 2003.
3. Total debt was reduced to euro 271.6 million in 9M04, from euro 602.2 million in the respective period in 2003. Net debt reached euro 111 million in 9M04, down from euro 473.5 million in 9M03.
4. The parent company, operating in a strongly competitive environment, has managed to sign euro 288 million worth of new contracts in 2004. These new contracts were telecom 67.6%, defense 21.2%, government IT 7.8% and banking IT 3.4%.

About INTRACOM group's headline financial figures, it is announced that:
1. Group turnover for the period Jan-Sep 2004 reached euro 445 m, lower by 2.8% compared to the 2003 respective period.
2. INTRACOM group EBT are expected to reach euro 29 million in 9M04, from euro 34.3 million in 9M03.
3. INTRACOM Group has managed to sign euro 459 million worth of new contracts in 2004. These new contracts were telecom 54%, defense 12.6%, government IT 15.6%. banking IT 4.7%, and constructions 13.1%.

The CEO reiterated the FY04 guidance:

• Despite the current international downfall, group sales are expected to reach euro 625 million, whereas EBT are expected to reach euro 44 million.

• Parent company's sales are expected to reach euro 470 million, whereas EBT are expected to reach euro 35 million, as was the guidance given during last June's AGM.

• During 2004, the company's client base was enhanced, thus bringing OTE's share in the group's turnover down to 32% from 50% in 2003.

• It is estimated that EBIT will increase in 2004, as a result of the company's organization restructuring. The operational result is anticipated to reach 10% of sales, vs 8.5% in 2003.