Kilkis, May 30^th, 2013

IMPROVEMENT OF KLEEMANN GROUP GROSS AND NET PROFIT MARGIN FOR THE FIRST QUARTER OF 2013

The first quarter of 2013 for KLEEMANN closed with an improved performance in gross and net profit margin for the group and the parent company. More specifically, the gross profit margin of the Group in the first quarter of 2013 amounted to 29.8% from 29.2% in the first quarter of 2012, while the net profit margin amounted to -3.7% from -4.7%, compared to the same period last year. The results after taxes and minority interest is improved and amounts to -121 thousand euro from -1,061 thousand euros in the corresponding period of 2012.

The Group's turnover for the first quarter of the year, 79% of which consists of international sales, has decreased by 14% compared to last year, as this winter was harsh and affected the activity of customers in northern European countries. The decrease of sales is due to this factor, while it is noted that the Group's sales in April totaled approximately 60% of the turnover of the first quarter covering the difference in a large degree, while order intake of the second quarter is high.

Furthermore, the Group has an excellent capital structure with positive operating cash flows of 1.3 million euros, while the net debt continues to decline and is only 2.1 million, from 2.7 million at December 31, 2012. Such a performance shows the financial self-sustainability of the Group. Moreover, the ratio of equity and minority interests to liabilities is very high and amounts to 1.67, confirming the limited exposure of the Group and its healthy financial course.

In the meantime, the subsidiary of Kleemann in China is now ready to execute orders as it has fully completed the staffing of both production and support departments and has also completed all the tests of its mechanical equipment. In the second quarter of 2013, there is a significant number already of order intakes from the Asian market, which will be completed on the third quarter of the year.

A strong point for the Group's expansion in the Chinese market and Asia in general, is the participation of the three-day exhibition “China International Elevator Exhibition 2013” in Shanghai, which will take place on 10-13 of June. The exhibition is expected to attract the biggest companies of the elevator sector worldwide. It is worth noting that the Group is going to participate this year as well in a number of major sector exhibitions such as the international exhibition “Asansor” in Istanbul, the exhibition ”Liftex” in London, the “Lift Expo Russia” in Moscow and in the exhibition “Project Lebanon 2013” in Lebanon, which is one of the most significant events of the construction sector in the Middle East.

Based on the increased order intake, as well as the Group's dynamic, the management expects an increase in turnover and consequently a significant improvement in its financial results and margins for the rest of the year.