June 9, 2006 The Company's Shareholders' General Meeting was held today, following postponement of the 5th issue of the daily agenda of the 2nd Repeat Extraordinary General Meeting on May 19th, 2006, after a Shareholder's request, according to article 39 par. 3 of C.L. 2190/20. According to the Law, the required disclosure obligations regarding the Shareholders' Invitation were not met for the assembly of the present General Meeting.
Today's General Meeting assembled quorum and reached 40.1562% (that is 28,488,824 common nominal voting shares, with six -6- shareholders present) of the total voting rights and resolved the following issue of the daily agenda:
5th issue: Issue of a convertible bond loan
The General Meeting unanimously approved the issue of a convertible bond loan according to the terms of article 1 par. 2 and 3 of Law 3156/2003, up to the amount of 16,000,000.00 Euro with maximum 5 years duration, non negotiable and with renunciation of the right in favor of the old Shareholders. Out of 16 million Euro, the amount of 10 million Euro will be covered by a European Bank on behalf of third investor, according to the announced on 03/17/2006 agreement (M.O.U.) regarding the financing of the Group’s restructuring business plan, as well as total refinancing of the Group’s bank debt by the main credit banks. Following the merger through absorption of Fanco S.A., Rodopi Spinning Mills S.A. and Gallop S.A. by Naoussa Spinning Mills S.A., and the release of the Convertible Bond Loan and its conversion to shares, the shares that the investor will receive by conversion, will be equal to 33.3% of the Company's outstanding shares.
Moreover, the General Meeting authorized the Board of Directors to decide about the special terms of the issue.
