1. the company's negative pre tax income for 3 consecutive fiscal years (2002-2004)
2. the negative pre tax income in the latest fiscal year (2004) greater in absolute number than those of the corresponding previous year period and greater in absolute number than the 20% of the company's turnover value,
decided to enroll the company's share under Supervision Regime since Friday March 4, 2005, in application of Article 110 / Element A of the Athens Exchange Regulation.

Since June 2005, the Company, along with the other textile companies of the Group, has jointly submitted for approval and financing the five year business plan, which will give the company the ability to deal with the liquidity problems for the realization of the required restructuring actions.
Hence on 03.17.2006, the Group of companies of the parent Naoussa Spinning Mills S.A. and the credit Banks National, Emporiki, Agricultural, Alpha Bank and EFG Eurobank, reached an agreement regarding the financing of the Group's restructuring plan as well as refinancing of the Group's total bank debt. The financing of the Group's restructuring plan is gradually executed according to progress recorded.

The company's Board of Directors, as provided by the agreement of the Group with the main credit Banks, decided on 3/17/2006 to propose to the Shareholders' General meeting the company's merger through absorption by the parent company Naoussa Spinning Mills S.A., based on the balance sheet on 3/31/2006. The merger process under way is expected to be completed within the year.
The Group's sustenance depends upon success of the business plan, regular financing, debt refinancing, settlement of the remaining liabilities, successful completion of the merger and share capital increase of the absorbing company.

We remain at your disposal for any further clarifications.