- Strong momentum in new ADSL subscribers (+143%). Target Upgrade to exceed 100,000 ADSL subscribers(1) by year-end ''06.

- Recurring revenues up by 11.5% to Euro73.2m.

- Good progress in LLU rollout. Important agreement for the 580km Athens-Thessaloniki backbone.

- FORTHnet is awarded (i) the expansion of the SIZEFXIS contract and (i) two geographical zones under the tender for Regional Broadband networks, enhancing its presence in Northern Greece and the Greek Islands.

Rapid expansion of subscriber base
FORTHnet is continuously increasing the number of subscribers as its goal is to maintain a significant market share in the ADSL market. At the end of Sep-06 FORTHnet''s ADSL subscribers(1) reached 74,672 recording an increase of 143.2% for the year. This growth was achieved despite the historically slower activity of the summer period. Current trading conditions remain robust with total subscribers(1) being in excess of 90,000. The strong momentum in ADSL additions allows the management to be optimistic for the remaining of the year raising the year-end target to exceed 100,000 ADSL subscribers(1).
During the 9 months of ''06, FORTHnet reported adjusted total revenues of Euro73.2m corresponding to an increase of 11.5% for the period. Internet Access saw the strongest growth with revenues increasing by 35% to Euro14.2m.
Due to the uninterrupted growth in net additions of broadband users, subscriber acquisition costs for broadband and telephony for the 9 months of ''06 reached Euro9.7m from Euro1.4m in the same period of ''05. Reported EBITDA was loss-making (Euro0.7m), against a profit of Euro10.3m in ''05. Adjusted for subscriber acquisition costs, EBITDA for the period was profitable at Euro9.0m from Euro11.7m in ''05. Net result after tax and minority interest stood at a loss of Euro9.4m compared to losses of Euro269k in ''05.

Investment Plan update and other recent developments
The company is on target with its investment plan to-date. Up to the end of Nov- 06, the company has applied for collocation to 150 OTE Exchanges. OTE has constructed (2) (and FORTHnet has gained access to) 31 exchanges. The company is currently completing the installation of its active network equipment and at the same time is starting the trial offering of its new services. It is estimated that 12 additional exchanges will be constructed by Dec-end while another 107 exchanges will become gradually operational by the 3rd quarter of ''07.

In terms of the fibre optic network (MAN) for the interconnection of the collocated exchanges, 85 km of network have already been constructed in the area of Athens, with unbundled OTE exchanges being linked on FORHTnet''s core network.

Furthermore, FORTHnet acquired, through a 15 year IRU, a 580 km two fibre optic pairs link between Athens, Thessaloniki and all the major cities neighbouring the Athens-Thessaloniki motorway. This agreement is expected to lead to significant savings in Capex, deployment time and network operating costs from 2007 onwards.

As part of a Greek Government Tender aiming to boost regional broadband penetration in Greece with subsidies of up to 50%, FORTHnet was awarded the development of two regions in Northern Greece and the Islands of the East Aegean representing a combined population of 1.5m. The 2 zones represent a combined population of 1.5m and the total project amounts το Euro55.6m. This development enhances FORTHnet positioning in these regions and the associated subsidies are expected to boost Broadband penetration further.

Finally, as part of the SIZEFXIS project (relating to telematic and telecom applications for the public sector) FORTHnet''s contract was extended to include a considerable number of additional public sector entities in Thessaloniki.

(1). Net Active ADSL subscribers plus new ADSL subscribers pending activation by OTE.