Within the framework of the release of HELLENIC FABRICS S.A. Group's financial statements for the period 01.01-31.03.2012 and in accordance to paragraph 4.1.4.4. of ATHEX Regulation, in view of the transfer of the company's shares to the “Under Supervision Category”, effective from Friday, 25.11.2011, according to ATHEX Board of Directors' decision dated 24.11.2011, based on the fact that the company's annual financial report of 31.12.2010 reported losses in excess of 30% of its net value, the Group's management announces the following:

In order to exit from the “Under Supervision Category”, the Group's management continues the implementation of specific measures in order to improve its efficiency and reduce its losses and so to eliminate the grounds that led to the transfer of the company's shares to the “Under Supervision Category”, like:

• Maintaining competitive selling prices in the denim fabrics product group,
• Continuously improving the production cost component in the total unit cost of denim fabrics,
• Implementing operating cost reduction measures, through reorganization and development of synergies within the finance & administration departments, and
• Continuing negotiations with the creditor banks and potential investors in order to secure financing for the return to full production and thus take advantage of economies of scale.

The above financial statements together with the Figures and Information for the first quarter of 2012 are posted on the Athens Stock Exchange (www.ase.gr) and company's websites (www.hellenicfabrics.com).