KORRES / 2012 FINANCIAL RESULTS

• GROSS PROFIT MARGIN increase  [+ 190bp]
• ADJUSTED EBITDA INCREASE
• MARKET SHARE IMPROVEMENT IN GREECE
• MARGINAL SALES DECREASE IN GREECE [ -1.6%]

Increase in gross profit margin and adjusted EBITDA profit [before interest, taxes, depreciation & amortization] for the KORRES group in 2012, despite the growing economic difficulties in Greece. Improved operational profitability is one of the annual results' highlights with the gross margin reaching a 190BPS increase [62% vs 60,1% in 2011], due to the group's cost rationalization and its product mix optimization.

At turnover level, the group's consolidated sales in 2012, affected by lower production volume for North America [Johnson & Johnson is now producing major part of its KORRES product portfolio locally] and by restructuring actions in priority markets [Germany & Spain] undertaken to ensure growth, reached 40m euro vs  42,7m euro in 2011.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), i.e. excluding the extraordinary restructuring cost impact - including one off receivables rationalization effect materialized by the group given the foreseen adverse financial environment - increased by 3,3% to 7,8m euro from 7,6m euro in 2011,  as a result of the enhanced gross profit margin and reduced operating expenses. Earnings before interest, taxes, depreciation and amortization (EBITDA), after deducting the above restructuring cost reached 4m euro.

It has to be highlighted that in 2011 there was an extraordinary income from Johnson &Johnson (contract obligation) upon the completion of the transition period. If this particular 2011 amount (2,3m euro) was excluded, the increase in the adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) would be 47,8%.

Net after tax and minority results amounted to -4,2m euro from -3,4m euro in 2011. Excluding the restructuring cost mentioned above, net profit after tax and minority rights, would be -0,3m euro.

In Greece, despite the negative financial circumstances and its marginal sales decrease [1,6%],  the group improved its market share in the pharmacy market; an outcome of its brand support strategy – innovative launches [antiageing /hair care / make up], strategic product category advertising [TV / print / web], digital communication investment [ new website / e-shop development ], sales network support [Pharmacy]. Additionally the group continued investing in Research & Development [ingredients and technologies for commercial categories like antiageing and suncare], scientific co-operations/research programmes and its organic farming network [contractual farming with local organic farmers].

Outside Greece, KORRES proceeded with significant restructuring actions in Germany and Spain in order to enhance

its position in the specific markets, while also growing its presence in Russia and UK. More specifically, the brand's sales network reached 600 points of sales (POS) nationally; it also entered a deal with a premium store chain in the UK, strengthening its nationwide presence with a total of 300 POS. The group's objective is to grow further its brand presence in pharmacies and semi selective POS through new product categories, new products and promotional activities. In North America, it continues expanding through its partnership agreement with Johnson &Johnson.

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