KORRES / Q1 2013 FINANCIAL RESULTS

• ADJUSTED EBITDA PROFIT INCREASE
• 1,6M EURO  POSITIVE  OPERATING CASH FLOW
• MARKET SHARE  IMPROVEMENT IN GREECE
• MARGINAL SALES DECREASE IN GREECE [ -1.5%]

Operational profitability improvement (adjusted EBITDA), market share increase in the Greek pharmacy network and strong growth outside Greece in key markets, were the financial highlights of Q1 2013 for the KORRES group. Specifically for its priority international markets – among which Germany, UK, France, Russia and Scandinavia – the group achieved an 18% growth.

At turnover level, group consolidated sales in Q1 2013 affected by lower production volume for North America [Johnson & Johnson is now producing major part of its KORRES product portfolio locally] and Greece's marginal sales decrease, reached 12,0m euro from 12,5m euro in Q1 2012.

Adjusted earnings before interest, taxes, depreciation and amortization excluding the extraordinary restructuring cost impact  – i.e. one off receivables rationalization effect materialized by the group given the foreseen adverse financial environment- (Adjusted EBITDA),  increased by 3,6% at 3,0m euro in Q1 2013 from  2,9m euro in the corresponding period of  2012, as a result of reduced operating costs. Earnings before interest, taxes, depreciation and amortization (EBITDA), after deducting restructuring costs reached 2,3m euro in Q1 2013.

The group achieved a positive operating cash flow of 1,6m euro from -1,3m euro in Q1 2012, a result of the operating cost improvement and the management efforts towards rationalization of working capital. Net after tax and minority results were -0,1m euro in Q1 2013 from 0,9m euro in the corresponding period of 2012.  Excluding the restructuring costs mentioned above, net profit after tax and minority rights would reach 0,6m euro.

In Greece, despite the negative financial clime and its marginal sales decrease [1,5%],  the group improved its market share in the pharmacy market, an outcome of its ongoing brand support strategy:

• SKINCARE / the group launched an innovative antiageing formula – Black Pine Serum – based on a NOBEL awarded discovery
• SUNCARE / the group developed a new multi-action suncare collection based on the stem cells of a rare Red Grape cultivar that in addition to protecting from UVA/UVB radiation, it prevents wrinkles and dark spots

Additionally the group continued with strategic product category advertising [TV / print / web] and its sales network support [Pharmacy]. Outside Greece, the group continued to increase its sales in Germany, France, UK, Russia and Scandinavia. The group's objective is to further grow its brand presence in pharmacies and semi selective POS through new product categories, new products and promotional activities.

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