The forecasts of the Management of Hellenic Fabrics S.A for positive prospects in 2004 have been also verified during the third quarter of the year.

Specifically, indigo denim fabrics? sales for the nine-month period, which are used for the production of branded jeans, accounted for almost 90% of its total turnover of euros 67,8 million, leading in an increase of the company?s turnover by 30,4% against the corresponding period of 2003. Fifteen percent of the denim fabrics? sales derive from the company?s expansion to new markets and the enhancement of its client base, the exports continue steadily to contribute more than 80% of the total turnover, mainly to EU markets.

The Mother company?s net profit reached euros 3,8 million increased by 10,1% against the corresponding period of 2003.

On the Group?s consolidated basis, which includes Thessalia Ginning Mills S.A and Kilkis Spinning Mills S.A., turnover amounted to euros 72,3 million, increased by 31,1% against the corresponding period of 2003, while profits, discounted for minority rights, amounted to euros 4,3 million, showing an increase of 10,8%.

Finally, the Group continued to strengthen its liquidity, showing, during the nine month period, a positive cash flow from its operating activities of euros 25 million, out of which, it self-financed its investments of euros 6,72 million and reduced its loans by euros 15 million.

The Group?s Management expresses the confidence that the tendencies of the nine-month period prospects will be further improved during the last quarter of the year. An encouraging factor for these prospects is the significant fall of the international cotton prices for the period 2004-2005.

Despite the fierce competition that the European textile sector faces from low-cost countries, the improvement of Hellenic Fabric?s financial figures, as well as its continuous upward course can be attributed also to its comparative advantages.

The vertical organization offers the possibility to choose the proper seed cotton qualities from Greek producers and thus to fully control in all production stages, the quality and the cost of the final product.

It simultaneously develops new products with increased added value, which are introduced to its branded customers. The company?s production switch, from classic denim fabrics to numerous types of newly developed ones, helps to differentiate from a low-cost country producer and creates even more positive prospects for future development.