Athens, 24/08/2011

Heracles Group Announces 1^st Semester 2012 Results

Results reflect the intensifying recession in the construction activity

Heracles Group of Companies announced today sales of 108.52 million Euros for the first semester of 2012, decreasing by 26.4% compared with 147.45 million Euros in the same period of 2011. Sales of the Company were at 92.84 million Euros, decreasing by 27.5% compared with 128.05 million Euros in the first semester of 2011.

The Group's earnings before taxes, interest, depreciation and amortization (EBITDA) was negative amounting to 52.01 million Euros. In the respective period of 2011 the Group's EBITDA was negative amounting to 24.01 million Euros. The Company's EBITDA was a loss of 61.86 million Euros in the first semester of 2012 compared to a loss of 18.98 million Euros in the first semester last year.

The Group presented in the first semester of 2012 losses after taxes of 63.45 million Euros, compared with 42.76 million Euros losses after taxes in the same period of 2011. In the first semester of 2012 the Company presented losses after taxes of 69.89 million Euros compared with 34.17 million Euros losses after taxes in 2011.

The decrease in the Group and the Company sales in the first semester of 2012 reflects the intensifying recession in the domestic market of private construction activity, for a fourth consecutive year, as well as the substantial suspension of the construction activity in public and co-financed infrastructure. The Group's and the Company's results were also affected by provision for doubtful receivables, while the Company's results were also affected by the impairment of its investment in a consolidated subsidiary.

Aiming to partially offset the effects of the domestic market deterioration, in the first semester of 2012, the Group and the Company continued and intensified their activity in the foreign markets and continued with strong measures to reduce operating costs and optimize the production, supply chain and administrative processes.