KORRES / H1 2014 FINANCIAL RESULTS

• +20% GROWTH IN CONSOLIDATED SALES
• +21% INCREASE IN ADJUSTED EBITDA
• DOUBLE OPERATING  CASH FLOW AT €3.6m

Substantial consolidated sales growth for KORRES Group in the 1^st Half of 2014 combined with improved operating profitability and strong operating cash flow.

Group consolidated sales increased by 20% in H1 2014-at 26,2m. Euro from 21,8m euro in H1 2013-incorporating the positive trend of all key markets.

International markets with 71% growth rate had a key role in sales increase, coming from the Group positive developments in the US market - where Korres started direct product distribution with its newly founded subsidiary KORRES USA Ltd – as well as the good performance of key European markets.

In Greece, and despite the adverse pharmacy market environment due to strikes, the Group achieved 4% increase, incorporating the positive impact of its communication and promotional plan.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), excluding the extraordinary restructuring cost impact, reached 5,5m euro in H1 2014 from 4,5m euro in H1 2013, increased by 21%, as a result of the total Group's sales performance, the consolidation of its newly founded subsidiary KORRES USA Ltd in US, as well as the benefits of the strategic agreement with AVON.

Earnings before interest, taxes, depreciation and amortization (EBITDA) after deducting the restructuring cost, grew by 32,5% reaching 3,9m euro from 3,0m euro in H1 2013.

Operating cash flow doubled at 3,6m euro in H1 2014 from 1,9m euro in H1 2013, as a result of the improved operating profitability, working capital rationalization and the strategic agreement with AVON.

Net after tax and minority results (profits) reached 0,5m euro in H1 2014 from -0,9m euro in the corresponding period of 2013.

The Group in H1 2014 continued in Greece its successful market support initiatives and new product launches in strategic brand categories.

In particular,

• In Hair colorants, where Korres has the no1 position in the pharmacy market since 2001 (Data IMS, Category Hair Colorant, 2001-YTD 6/2014), presents the new permanent natural hair colorant Argan Oil Advanced Colorant, confirming the innovative Group orientation in this product category as well. With the unique Pigment-Lock technology that locks the color, Korres is changing the facts in permanent colorants.
• The new Face product range with intensive and specialized action, based on Wild Rose.
• The After-Sun face-cream, with edible Greek yogurt, a global innovation for KORRES.
• The body-care line - the Santorini Vine collection- the result of KORRES collaboration with the Union of Santorini Co-operatives (SantoWines) within the framework of promoting Greek flora and supporting the local economy.

Outside Greece, the Group is focusing in North America with its newly founded subsidiary as well as in key European markets. Furthermore, the Group proceeded to the strategic agreement with AVON, for the production and distribution of KORRES products in Latin America, offering a unique opportunity for the brand to reach an extensive consumer audience that shares the KORRES values and philosophy.

For more information:

INVESTOR RELATIONS / Athina Lagou / Τ: (+30) 213 018 8905, E: athina.lagou@korres.com

PUBLIC RELATIONS / George Anthoulakis / T (+30) 2130 188835 / E george.anthoulakis@korres.com