Multi-Shareholder Structure

Multi-shareholder Companies, under certain circumstances, might experience less flexibility in the decision making process (e.g. due to the lack of quorum in a General Assembly) as well as in issues related to their stock's performance.

IASO S.A. has a multi-shareholder structure (35,000 shareholders), in which there is no single shareholder holding a substantial percentage of the Company's shares (much less than 5%).

Physicians-associates of the Company, who offer their medical services within IASO's facilities, constitute the most important part of the Company's shareholders.

Although IASO S.A. is a multi - Shareholder Company, it has proved to be a successful story (sound financial results, high participation rate in the General Assemblies, etc.) as it has enhanced the benefits of a successful combination of its multi-shareholder structure (with associates physicians contributing to the high vacancy rate of the Company's Clinics) and its Administration comprised by experienced managers.

In the unlike circumstance that the shareholders - physicians will choose not to continue their cooperation with the Company, temporarily the Company might not be in the position to achieve high vacancy rates.

RISKS RELATED TO THE SECTOR

Legal & Institutional Framework

To the extend that the Company intends or / and has advanced in investments in the Health care sector, any change in the Legal-Institutional Framework could lead potentially to modifications or, in extreme cases, to determining changes in the above investment and business policy and strategy, as well as to modifications in the implementation timetable of any investment project.

For example, changes that occurred recently in the institutional framework referring to the establishment and development (independent or through co-operations - acquisitions) of Diagnostic Centers (Network) can be mentioned.

The recent proposed (for vote from the Greek Parliament) Presidential Decree No. 84 (Government Gazette No. 70/10.04.2001), relating to the terms, conditions, procedures and new standards for the establishment and operation of Private Institutions providing first degree Health care services, lead the Administration of the Company to decide not to proceed to the direct implementation of the above investment plan. The company is re-examining the issue, by taking into consideration the objections and discussions that will take place before the final implementation of the above Presidential Degree.

Current Conditions

The business practices prevailing nowadays in the Private Health Care Sector are subject to a great variety of changes. The Private Health Care Sector is experiencing a transitional period, which is characterized by strong consolidation trends, mergers and acquisitions and greater expansion rates in comparison to these being observed in the Public Health Care Sector.

Within the above framework and due to the changes occurring in the Health sector (and also due to the continuous increase of the living standards of the Greek people), an increase of the market share of the Private Healthcare against the Public Healthcare is being observed.

In addition, the necessary processes, which will lead to the future course of the National Healthcare System, and this of the Public Hospitals, have not yet taken place. Furthermore there are still talks as well as agitation for the accomplishment of a final agreement between the State and the Syndicates for the reformation of the Social Security System.

To the extend that the State will accomplish an important improvement of the National Healthcare System and reformation of the Social Security System, it is likely that certain changes might occur, which will lead to the revision of scheduled and already decided investment plans of the Company, to the extend that the latter might be partially substituted in the future by investment plans undertaken from the Public Healthcare System.

Concerning the above, we could mention (as an example), the recent enactment and operation of the evening outpatient's department which offer medical services, the recent appointment for employment of managers in hospitals and clinics of the Public Sector, the possible upgrade or consolidation of Public hospitals, etc.

The Capability of the Domestic Market

According to various surveys, the Greek Healthcare market is expected to have an upward trend for the next years, although in other sectors of the Greek Economy we observe stagnation and/or a shrinking.

The companies active in the sector could face potential risks only in the long run, only to the extend that there is an excess of services offered towards a possible lack of demand due to certain numbers of population. It is estimated that even in this case, these risks would not influence large Entities or Health Care Groups like IASO S.A. as it could happen with small Private Clinics.

OTHER EXOGENOUS FACTORS

International & National Economy, GDP & Living Standards

Stock Market Conditions

The prevailing conditions in the stock market have direct and indirect effects on companies in the process of listing or companies that have already been listed in any (domestic or foreign) stock market.

Taking into consideration the volatility existing nowadays in the stock markets world-wide, the Institutional and Private investors who trust IASO S.A. by investing their funds on the company's shares, it is possible for reasons related to the reorganization of their portfolio's position and of their corresponding risks, to reduce their positions, by reducing at the same time their participation in the Company's shares.

This risk is apparently smaller for IASO, since Healthcare sector in Greece, is considered as a safer investment with sound potential prospects.

GDP & Living Standards

During the last years, Greece managed to achieve high growth rates with annual GDP growth rates exceeding those of other European countries.

The disposable income of consumers plays an important role to the growth of the Private Healthcare sector.

During periods of economic adversity, it is possible that part of the individual domestic consumers might suffer a reduction of their purchasing power.

In this case, it is likely that consumers will not have the ability to spend part of their income for the kind of medical services offered by IASO GROUP, but instead, turn in to other institutions for covering their needs on health issues.