According to the ATHEX regulation, the BoD of the ATHEX in its meeting on 02.17.2006, taking under consideration the information presented in the company's Prospectus for the Share Capital Increase (SCI) due to merger through absorption of the subsidiary OLYMPIC SPINNING MILLS S.A., the SCI through rights issue and the issue of convertible bond loan, as approved according to the above, decided to enrol the company's shares to the Supervision Regime as of Friday February 18, 2005, in application of Article 110 / Element B (enrolment due to disturbing facts) of the ATHEX Regulation.

On March 15, 2006 an agreement was signed under special terms and conditions with the main credit banks regarding the financing of the restructuring and reorganization business plan for the companies of the group's textile sector, providing, among others, the merger through absorption of FANCO S.A., RODOPI SPINNING MILLS S.A. and GALLOP S.A. by the parent NAOUSSA SPINNING MILLS S.A. The merger will take place based on the Balance Sheet as of 3/31/2006, also constituting the transformation Balance Sheet, as approved by the companies' BoD on 3/17/2006. Already the General Meetings of the merged companies on 09/12/2006 approved the above merger On 09/30/2006 (date of financial statements) the notary deed of the merger was signed, while all the required documents for the approval of the merger by the supervising authorities have been submitted (Ministry of Development, Societes Anonyme and Credit Directory). Approval of the merger is expected along with approval of the prospectus by the Capital Market Committee.

The financing of the group's restructuring business plan has been concluded and the latter is already successfully implemented, resulting to major cost reduction regarding the cost of production, administrative and selling cost. Moreover, through restructuring of the commercial network, sales of the group steadily improve, while major improvement is recorded in the commercial profit margin via the implementation of new procedures for financial assessment of all the orders and the rejection of orders with negative budgeted E.B.I.T.D.A.

At the same time, the merger process has significantly advanced and is expected to be completed on schedule, a fact that will allow better management of the group and further decline in administrative cost. The viability of the Group will depend on the successful and prompt realization of the business plan, the successful completion of the merger and share capital increase, the successful and without any delay debt restructuring, the financing of supplies and sales, as well as the successful settlement of remaining post dated and current liabilities.

The management of the company estimates that realization of the above, already in progress since early April, will bear fruits in the second half of the current fiscal year.

We remain at your disposal for any further clarification.