The Management of HELLENIC FABRICS S.A. announces that a Memorandum

of Understanding was signed today with its creditor banks for the financing of  the Company with new funds of € 11.2 million.

This agreement will be completed with the signing of a Syndicated Bond Loan

Contract, within a month's time.

The funds will be used for the financing of the Company's Business Recovery Plan.

The Company's Management continues also its discussions for the participation of a third investor.