London (ots) - Hatzioannou, the leading European group in the second skin manufacturing and retailing, announced its first quarter 2004 consolidated results.

Hatzioannou shares are listed on the Athens Stock Exchange. (Reuters: HADr.AT), (Bloomberg: HATZK GA) and also traded on the Deutsche Borse.

Group Financial Highlights

- Total revenues reached EUR 26 million in 1Q04 from EUR 26 million in 1Q03, reflecting primarily the sale of subsidiary business units, such as Ergo Textile and Iliofin, that contributed in total EUR 5.6 million in 1Q03. On the other hand, Unique Commerce Ltd, the group's retailing subsidiary in the UK was included for the first time in the group's accounts. Furthermore, on a like basis, the group revenues increased by 12.5%.

- EBITDA increased by 18% in 1Q04 from EUR 5.9 million to EUR 6.9 million, as a result of a strategic shift to the core business that provide also higher margins.

- Earnings before tax increased by 34%, from EUR 2.1 million in 1Q03 to EUR 2.8 million in 1Q04. Increased earnings was the net result of capital gains recorder by the Holding company (due to the flotation of Sprider) and losses of the Virgin subsidiary included for the first time in the consolidated accounts.

- Earnings after tax decreased slightly, due to the combined effect of increased taxation on profits of the Holding company and losses from Virgin.

- Total net debt was reduced by 36% to EUR 48.6 million from EUR 76.2 million over the same period last year, as a result of the sale of two subsidiaries, increased operating cash flow and a share capital increase in Sprider due to the flotation of the company in the Athens Exchange.

Paste the following link into your web browser to view the full version of this announcement: http://www.rns-pdf.londonstockexchange.com/rns/2345z_1q04 results-2004-5-28.pdf

This information is also available on Hatzioannou's website at www.hatzi.gr

This information is provided by RNS The company news service from the London Stock Exchange

Nick Demos, IRO

Tel.: ++30 210 6387820

Email: nick.demos@hatzi.gr