18.09.2007

Imako Media SA has announced that in the framework of implementing the timetable for the allocation of capital raised from share capital increase, as approved at the first Repeat General Meeting of Shareholders held on 30.05.2007, an agreement was reached in principle to buy DERTI FM & SFERA FM radio stations by acquiring, respectively, 100% of the shares of companies RADIOPLIROFORIKI G. POLITIS MASS MEDIA SA and SPACE FM STEREO SA. The total buyout price comes to eleven million euro (€ 11,000,000). The buyout price for SPACE FM STEREO SA will be six million six hundred seventy five thousand euro (€ 6,675,000) while the buyout price for RADIOPLIROFORIKI G. POLITIS MASS MEDIA SA will amount to four million three hundred twenty five thousand euro (€ 4,325,000).  The company believes that the total buyout price yields a very good return for shareholders.  Moreover, according to an evaluation conducted by Baker Tilly Hellas SA, the value of these companies is between 6.6. and 7.3 million euro, with an average value of 6.9 million, for RADIOPLIROFORIKI G. POLITIS MASS MEDIA SA and between 7 and 7.7 million euro, with an average value of 7.4 million, for SPACE FM STEREO SA. Finalisation of the agreement will depend on the results of the legal check, a process that is already underway.  At any rate, under the requirements of the ASE rules of operation, the company will soon proceed to making the necessary announcements and notifications.

More specifically, according to the company’s Board of Directors Report prepared pursuant to article 289 of the ASE Rules of Operation, the company intends to invest in the radio broadcasting area the amount of five million six hundred sixty one thousand euro (€ 5,661,000) to acquire the aforementioned companies.   Moreover, given that the total buyout price will be higher than the estimated amount of raised funds earmarked for investment in the broader media sector, the company will, under the provisions of law 3156/2003 and on the basis of the special authorisation granted to the Board by the General Meeting of 22.06.2006, go ahead with a common bond issue in the amount of five million five hundred thousand euro (€ 5,500,000) by 31.12.2007, of which the amount of five million three hundred thirty eight thousand and five hundred euro (€ 5,338,500) will be used to cover 100% of the total buyout price of both companies, while the remaining amount of the bond issue, amounting to one hundred sixty one thousand and five hundred euro (€ 161,500), will be used to reduce short-term borrowing.

Imako’s drive to invest in other companies which are active in the broader media sector was sparkled by the amending of the applicable media regulatory framework passed by the 165^th plenary session of Parliament on 05.07.2007 and published in the Government Gazette 161/19.07.2007. More specifically, based on a market research conducted by it, the company came to the conclusion that the companies under acquisition, i.e. RADIOPLIROFORIKI G. POLITIS MASS MEDIA SA and SPACE FM STEREO SA, have the qualitative characteristics and operate within a philosophy and culture that is very similar to Imako Group’s philosophy and culture.  Moreover, besides their qualitative characteristics, the financial results and the dynamism of these two companies were among the key factors that led the company to the acquisition of the two radio stations.  To inform investors, it is appropriate to state here some brief information about the two companies under acquisition.  First, with reference to SPACE FM STEREO SA, we could say that it has been a very successful radio station for some years now and it regularly ranks among the top in terms of daily ratings.  This success is reflected in its financial figures as the company has shown significant profits over the last three years.  The total profit before tax, in particular, for the years 2003 – 2006 amounted to five million five hundred twenty three thousand and eighty five euro (€ 5,523,085).

Similarly, RADIOPLIROFORIKI G. POLITIS MASS MEDIA SA, through its radio station DERTI FM, was a nice surprise to the radio broadcasting market as it managed to climb and establish itself among the top in terms of daily ratings.  In particular, it is placed among the top on the average ratings of all radio stations with an audience of approx. 12% in the period from 16/4/2007 to 8/7/2007. Impressive was also its audience increase from 2% between 20/2/2006-19/3/2006 to 12% in the period between 16/4/2007-8/7/2007. This substantial increase is also revealed in its revenue from promotions, which amounted to one million eighty five thousand euro (€ 1,085,000) over the seven-month period 2006 from a mere one hundred forty thousand euro (€ 140,000) over the same period of last year, i.e. an increase of around 675%.
The integration of these two companies is expected to significantly strengthen the Group’s profits and financial figures.