The broader investment policy of the Group involves the following:

IASO S.A

IASO Clinic covers all obstetrics and gynaecology cases as well as a broad range of diagnostic and therapeutic services. The upgrading of services provided is primarily attributed to the provision of innovative services with state-of-the art medical equipment, as well as to the reclamation and expansion of the main building facilities.

More specifically, the expansion and infrastructure upgrading of the Breast Center as well as the establishment of the Iodine Unit have been completed, where a new, 4-D ultra sound machine has already been installed. Lastly, a Dietary Support center operates in the Outpatients Unit as well as the second unit of a modern linear accelerator.

Likewise, major investments have been realised as regards managing information systems, with the completion of costing the Group services using Activity Based Costing method. Within the current year ABC system will also be applied in the rest of the Group companies. Lastly, the upgrading of the nursing and surgical units is under way. The latter, in combination with the aforementioned plans, is expected to yield greater efficiency and flexibility in the treatment of any case preserving at the same time high quality standards of the services provided.

IASO GENERAL (former HERA S.A.)

Following the radical upgrade and restructuring of the former HERA S.A., and its' conversion into a General Clinic under the new name IASO HOLARGOS GENERAL CLINIC S.A. in 2003, the Group continues investing in the company aiming at its' establishment as a model hospital unit at global level.

IASO GENERAL, with a current capacity of 222 beds, operates as a General Clinic with particular emphasis on cardiac cases. Also, a sizeable intensive care unit (ICU) is in operation, which also covers cardiological cases, and provides the first fully organized modern Mechanical Heart Unit in Greece. Moreover, 10 ultra modern surgical units, O.D.C. (one day clinic) and angina pecrotis unit are in operation.

Further more, an ultra modern Diagnostics Center is in operation, covering all diagnostic sectors equipped with state-of-the-art technology in diagnostics and in additional support activities. The Diagnostics Center provides the first γ-Camera in Greece with the capability of conducting Spec Pet tomographies by using short-lived isotopes. It is the only hospital in Greece and one of the few in Europe, that has the infrastructure to administrate digital medical images (PACS).

It is also worth noting that the operation of the clinic is supported by the most modern electronic infrastructure systems, equipped with medical applications and software (RIS, MUSE, QS, CIS, LIS, BMS) and also an ultra modern IT infrastructure and MIS system SAP R/3.

Finally, the clinic has concluded several scientific cooperation agreements regarding research projects, with major and well-established foreign centers including Harefield Hospital and Imperial College. All the above verify the high professional standards of the medical and nursing staff as well as the high quality of its' equipment. The new four storey building that will accommodate the Practitioners' offices, diagnostic and physiotherapy center and underground four storey parking station will be shortly completed.

IASO GENERAL as a General Clinic and Diagnostic Center is significantly contributing to the further expansion of medical services provided by the Group.

High growth rate in the occupancy ratio and increase in revenues for IASO GENERAL during the current fiscal year are expected to significantly contribute to the Group's profitability. The increase in the collaboration agreements with more than 500 practitioners of all specialties and the conclusion of agreements with various insurance institutions took major part.

Construction of Pediatrics - Child surgery clinic

On 12-19-2002, the Group announced the establishment of IASO PEDRIATICS S.A with the distinctive title of "IASO PEDIATRICS" with a share capital of euro 300.000.

Shareholders are IASO S.A with a 99% participation and IASO GENERAL with 1% respectively. The above-mentioned company will operate as a Pediatrics - Child surgery clinic having a 60-bed capacity, and its construction, already in progress, will be completed in 2004.

The clinic aims to provide a full range of health care, treatment and nursing services, within a friendly environment for children, in harmony with the high quality services of the Group.

An integrated complex of surgical rooms, Intensive Care and One Day Clinic units as well as diagnostic laboratories of advanced technology will operate in the Clinic.

Following the termination of the Olympic Games, the clinic will be ready to operate, complementing on the Groups' services that will be the sole provider of a full range of health services in Greece.

Construction of IASO Thessaly

On 12.18.2002, IASO THESSALY S.A. was established, while on 3.29.2003, the Extraordinary Meeting of its shareholders approved a share capital increase by Euro 3 million, through a rights issue. More than 80 practitioners of the Thessaly region participate in the share capital and the number of shareholders is expected to increase.

The new company will constitute the entity for the realization of the investment plan for the establishment and operation of a General and Obstetrics Clinic in the region of Thessaly. The clinic will initially have 130 bed capacity that will expand in the future to 200.

IASO Thessaly as a General and Obstetrics Clinic, is going to employ intensive care units, high tech diagnostic center as well as an artificial kidney unit.

This investment constitutes a strategic step for the provision of medical services outside the region of Attica, as Thessaly is the third largest region in Greece in terms of population. The prospective operation of this new Clinic, will effectively meet the demand for health services within the broader area of Larissa, Karditsa, Tricala and Volos.

Within the current year the Group acquired a lot of 50 acres in the region of Nikaia, in Larisa and the respective construction studies will be shortly elaborated.

Rehabilitation Center

The Company aims to establish a Rehabilitation Center at Mesogia Attica, that will serve patient cases of the Group's clinics, as well as of other medical institutions within and outside Greece. Within this framework, market research concerning rehabilitation services is being conducted, while a study regarding the selection of the location of the Rehabilitation Center is in progress.

Group expansion in the southern suburbs of Athens through the establishment of a medical unit, with an approximate capacity of 200 beds, and the participation of general practitioners in the share capital. The specific unit will provide obstetrics, gynecological, general clinic and diagnostic services, while there is high possibility for it to operate as pediatrics clinic as well. The main objective of this establishment is to meet the demand in the greater area of the southern suburbs of Athens.

Aesthetics Network. A Unit of Laser - aesthetics is already operating in IASO S.A. The Company aims to expand this specific activity through the establishment of a Medical Aesthetics Center in Athens and Thessaloniki, along with further expansion in major provincial cities in the future. These centers will use high technology and luxurious infrastructure and will cater to higher-income consumers.

Establishment of a diagnostic center network in Attica, Thessaloniki, Patra, and collaboration agreements with other regional diagnostic centers. The materialization of this particular plan has been postponed, until the specifications of Presidential Decree No. 84 (related to the terms & conditions, for the establishment and operation of diagnostics institutes) are fully clarified.

ΙASO SERVICES S.A.

Within the context of the expansion of Group activities into other services, "IASO SERVICES S.A" was established with the distinctive title "IASO SERVICES" and with an initial share capital of 60,000 Euro. Its shareholders are IASO with 99% participation and IASO GENERAL with 1% participation.

This specific company will manage Group activities outside the medical field, such as beauty and cosmetic services, management of retail shops located at the Groups' premises, sale of various products under IASO Brand Name. The Group intention for IASO SERVICES is for the company to undertake central management of all supportive services at group level, thus achieving major economies of scale and offering services different than those of IASO group.

The financing of these projects is secured and comes mostly from:

1. Self- financing of the Group (derived from its high profitability coupled with high depreciation and amortization and its capacity to build reserves)
2. Funds from the participation of new shareholders (doctors), each time a new entity is formed.
3. Other sources of funding, such as borrowing, bonds (convertible or not), etc.

Investments 2001-2003

The following table presents Investments in fixed assets and participations for the period 2001-2003 per fiscal year: