MINOAN LINES

FINANCIAL RESULTS OF FIRST 6MONTH PERIOD 2012

• Decline of the Net Result Loss
• Increase of Market Shares in the Patras-Ancona route in all Traffic Categories
• Increase of Market Shares on the Heraklion – Piraeus route in all Traffic Categories

 Financial Results

 The financial results of the company for the first half year of 2012 were significantly affected by the combination of the extreme austerity measures (high taxation, reduction in wages-pensions) which led the Greek economy to the fifth consecutive year of negative growth and the lack of liquidity overshadowing any possible investment activity in the country. Hence, all the above played an important role on the fall in the total market volumes on all routes (international and domestic) the company operates.

 Additionally, the stabilization of fuel cost at record high levels and the intensive competition in the sector have had unfavorable effects in the financial results of the first six months of 2012.

 Despite the economic downturns and the stressed economic environment, Minoan Lines succeeded not only in retaining its healthy condition and status but also to consistently increasing its market shares in both the domestic and international lines. Having as a guiding principle the continuous improvement of its position, the company took a number of decisions which are expected to yield significant benefits. The first decision was the withdrawal of the company's vessels from the Patras-Venice route where the operating costs overshadowed the total revenue received.

 Moreover, the negotiations for the chartering of the two vessels: HSF Europa Palace and HSF Olympia Palace, resulted in an agreement in July which is expected to strengthen the company's cash position while consenting to the improvement of the net results of the forthcoming periods. All these have also enabled the company being current on its bond loan agreement obligations.

 The company's revenue for the 6-month period of 2012 stood at € 67.50 million while the operating result (EBITDA) was shaped at € -8.37 million. The net results of Minoan Lines stood at € -20.99 million. It is worth mentioning that the ferry sector's main feature is seasonality in the total turnover, thus the first six months of the year is traditionally being less productive in terms of revenue recorded compared to the second ones.

 Traffic Volumes – Market Shares

Ancona Route

 In the Ancona route, Minoan Lines, having as a guiding principle the achievement of the most efficient economic operation of its fleet, succeeded in obtaining higher market shares in all traffic categories compared to the respective period of 2011. Specifically, during the first semester of 2012 in comparison with the respective period of 2011 the company accomplished 48.5% of total trips while was preferred by 52.4% of the passengers, 49.4% of private vehicles and 54.5% of trucks.

Moreover, during the same financial period, Minoan lines carried 119,690 passengers, 28,661 private cars and 34,079 freight units.

 Domestic Market

On the route “Heraklion-Piraeus”, Minoan Lines retained its leading position during the 6-month period of 2012 while it improved its market share in all three categories of passengers, private cars and trucks.

The market shares on the specific route reached 65.9% for passengers, 60.9% for private cars and 45.0% for freight units, with the company having realized 50.8% of the trips. Moreover, the company carried 333,790 passengers, 31,827 private cars and 26,830 freight units.