Following the merger procedure of the companies HALCOR, S.A. and FITCO, S.A., through absorption of the latter by the former, the Boards of Directors of the two companies, during their meetings, dated March 24, 2006, after the completion of the pertinent valuation study, determined the value of the two companies to be merged in the ratio of 12 to 1, which is subject to approval by the General Meetings of the Companies' Shareholders.

However, as a result of the confusion, due to the fact that HALCOR, S.A. participates in the share capital of FITCO, S.A.( by 50,317 . . . % , the values ratio of HALCOR, S.A. and FITCO, S.A. (regarding the percentage of 49,682 . . . %, of the share capital of the latter, which is not owned by HALCOR,S.A.) was finally determined in 12 to 0,4968285990 respectively.

Following the ratio of shares exchange determined as above, the shareholders of FITCO, S.A. will take 0,78084608539 new shares of HALCOR, S.A., to be issued following the merger, for each one share of FITCO, S.A. they own. The number of shares owned by the shareholders of HALCOR, S.A. will remain unchanged.