29.08.2008

The Company IMAKO MEDIA S.A. announces to ATHEX the following:

IMAKO Group demonstrates an important improvement in its financial results

The Company’s turnover for the period ended on June 30, 2008 amounted to 21,626 thousand Euro versus 20,943 thousand Euro on June 30, 2007, demonstrating an increase of 3.26%. The gross profit amounted to 3,838 thousand Euro on June 30, 2008 versus 3,846 thousand Euro on June 30, 2007, remaining materially unchanged. The gross margin amounts to 17.75% on June 30, 2008 versus 18.37% in the corresponding period last year. The total operating costs of the Company for the first six months of 2008 amounted to 3,407 thousand Euro, reduced by 6.48% in relation to the corresponding period of 2007, amounting to 3,643 thousand Euro. The Profit before Financial, Investment Results, Depreciation and Taxes for the fiscal year amounted to 1,619 thousand Euro on June 30, 2008 versus 1,546 thousand Euro on June 30, 2007, that is, they were increased by 4.7%, while the Loss/ profit before taxes and investment results amounted to 932 thousand Euro in profit on June 30, 2008, versus 870 thousand Euro in profit on June 30, 2007, demonstrating an increase in the region of 7.12%. Finally, the net profit/ loss before taxes amounted to 241 thousand Euro in profit on June 30, 2008 versus 152 thousand Euro in profit on June 30, 2007, demonstrating an increase in the region of 58.55%, while the net profit/ loss after taxes amounted to 266 thousand Euro in profit on June 30, 2008 versus 166 thousand Euro in profit on June 30, 2007, demonstrating an increase in the region of 60.20%.

For the fiscal year ended on June 30, 2008, the Group’s consolidated turnover amounted to 28,137 thousand Euro versus 23,439 thousand Euro on June 30, 2007, demonstrating a significant increase in the region of 20.04%. The gross profit amounted to 7,208 thousand Euro on June 30, 2008 from 5,038 thousand Euro on June 30, 2007, significantly increased by 43.06%. The gross margin amounted to 25.6% on June 30, 2008 versus 21.49% in the corresponding period last year. The Profit before Financial, Investment results, Depreciation and Taxes for the fiscal year amounted to 2,373 thousand Euro on June 30, 2008 versus 2,034 thousand Euro on June 30, 2007, that is, they were increased by 16.65%. The Profit before tax and investment results amounted to 1,558 thousand in profit on June 30, 2008 versus 1,286 thousand Euro in profit on June 30, 2007, increased by 21.15%. Finally, the net profit/ loss before taxes amounted to 335 thousand Euro on June 30, 2008 versus 477 thousand Euro in profit on June 30, 2007, while the net profit/loss after taxes and minority rights amounted to 210 thousand Euro in profit on June 30, 2008 versus 416 thousand Euro in profit on June 30, 2007.

The total investment expenditures for the first half of 2008 amounted to 328 thousand Euro for the Company, while the respective sum for the Group amounted to 1,077 thousand Euro.

The financial results of the first half of 2008 also include companies which were not consolidated in the financial statements of the first half of 2007, such as the Company RADIOPLIROFORIKI MME S.A. (radio station derti), the Company SPACE FM STEREO S.A. (radio station Sfera), ATTICA IMAKO MEDIA SRL (publishing company of the magazine ΙnStyle of Romania), and the publishing Company STAR PRINT S.A.; thus, the Group’s financial figures cannot be compared to those of the corresponding period.

In the context of maximizing the efficiency of corporate resources, as it has already been notified to the investors via ATHEX, it was decided to suspend the publication of the Greek edition of the magazine Real Simple,  which demonstrated negative operating results in the region of 940 thousand Euro for the first six-month period of 2008, a fact which is expected to influence positively the operating results of the second six-month period and improve significantly Imako’s financial results, as well as the turnover of the second six-month period.

The Group’s growth is expected to be improved, since investments in Greece, via the printing Company STAR PRINT S.A., as well as in Romania via the Company ATTICA IMAKO MEDIA SRL(publishing Company of the magazine Ιnstyle in Romania) are in the initial stage of implementation and materially contribute to the growth since the second quarter of 2008, and of course to the good progress of investments in radio businesses RADIOPLIROFORIKI MME S.A. (radio station Derti)  and  SPACE FM STEREO S.A. (radio station Sfera).

More precisely, the Group will achieve economies of scale through the investment in the setting up of a printing unit, since all flat bed printings will be implemented in this unit.

In addition, the publication of just two issues of the roman edition of the internationally acclaimed women’s magazine In Style, during the first six-month period, in a market where the Greek presence is significant, managed to obtain a very significant share of the market, within the scope of its business plan. We estimate that the publication of the magazine is expected to contribute positively to the Group’s financial results after completing 12 months of circulation, which is the period that is statistically required for the product mature stage in the market that is available.

Finally, the financial results of the two radio stations, which clearly improved the Group’s results, prove indisputably the soundness of the Management’s decision to invest significant capitals, equity and foreign, for their acquisition.

We believe that the Group’s recovery is progressing smoothly and that the strategic plan followed towards this direction is specific and effective, given that the recovery materially began in April 2008. The Management will continue to be entirely focused on the implementation of the goals set for the period 2008/2009 regarding the recovery of profitability and the improvement of cash flow.

Overall, the Group keeps up with the plan of profitability and cash flow improvement, while we continue to closely keep up with the developments of the markets and the economies in the main areas of our activities.

ATHENS 29.08.2008