Friday, 24 May 2002

+++ INTRACOM General Annual Assembly: Accelerating Progress and New Alliances +++

During his speech at INTRACOM General Annual Assembly on Friday, 24th 2002, the Chairman of the Group, Mr. Socrates Kokkalis, discussed the company's international presence, its strategic goals, and its future course of development.

Furthermore, Mr. Kokkalis denounced the insidious business war, against INTRACOM, which has escalated during the last months while involving the use of slanderous anonymous letters. The General Assembly unanimously passed a resolution condemning these acts.

In the main part of his speech, Mr. Kokkalis referred to INTRACOM's developmental strategy with a focus on:

• The implementation of its business activity in Romania, Bulgaria, Serbia, and F.Y.R.O.M.
• The expansion of its activities in Hungary, Slovakia, Croatia, Czech, and China
• The expansion of its activities in the Turkish market
• The strengthening of its presence in the US through Conklin. As Mr. Kokkalis mentioned,
  INTRACOM has signed a heavyweight agreement with one of the seven largest American
  companies, while on the verge of another agreement with the leader company of the field
  in the United States of America.
• The development of new (original) competitive products with a view of supporting the
  company's effort of expansion into new markets
• The increased participation of defence programs in company sales
• Taking advantage of the opportunities to be presented for IT projects in view of the
  implementation of the 3rd European Support Framework, and
• The new strategic partnerships and company take-overs, which are to strengthen
  INTRACOM's penetration into new technologies and new markets.

Additionally, INTRACOM's Chairman referred to the company's recent business moves in the framework of the above-mentioned policy and, in particular, to:

• The INTRACOM- Siemens strategic partnership through the relevant agreement for
  participation of the former by 41% into the share capital composition of Siemens
  Teleindustry and its importance for the implementation of company business plans.
  Mr. Kokkalis pointed out that this participation creates even more added values, not
  only due to the broadening of business activity, but also due to the profits to be made,
  when Siemens Teleindustry enters the Athens Stock Exchange.
• The agreement for INTRACOM participation by 26.2% into the share capital composition
  of Swedish KEV AB, a new company specializing in state-of-the-art technology, which
  develops third generation (3G) mobile telephony products, and
• The significant strategic partnership agreement to be signed with a top IT and
  Telecommunications company in Turkey, which will be officially announced by INTRACOM
  in June. In his speech, the Chairman laid particular stress on the Turkish market,
  underlining its great potentials, since he asserts the country will overcome its problems.

Mr. Kokkalis also referred to another INTRACOM international success; its participation in three international indices:

• Dow Jones STOXX 600 Index,
• FTSE4GOOD Europe Index, and
• FTSE4GOOD Global Index.

The first Index includes 600 leader companies of the field, internationally. FTSE4Good Europe Index lists 250 large European companies, while FTSE4Good Global Index lists 573 large companies of international standing.

Financial Results

According to the 2001 consolidated balance sheets, in the last year INTRACOM Group increased its sales by 16%, which amounted to EUR 962.0 million. Profits before interest, tax, depreciation and amortization (EBITDA) increased substantially by 25% rising to EUR 229.5 million, while profits before tax rose to EUR 158.3 million.

Company assets total EUR 1.813.5 million, presenting an increase by 16% while confirming INTRACOM Group's leading position amongst Greek industries. The shareholders equity comes to EUR 740.3 million, an exceptionally large figure for Greek standards, thus confirming the robust financial standing of the Group, which is ranked fifth among listed companies, excluding those of the banking sector.

At corporate level, in 2001, INTRACOM (after absorbing Intrasoft) presented increased financial figures in comparison to 2000, since: its sales rose by 9%, thus reaching EUR 770.5 mil. The profits before interest, tax, depreciation and amortization (EBITDA) attained a substantial increase by 28% amounting to 170.2 million EUR, while profits before tax rose to EUR 128,2 mil. In 2001, the dividend per share reached EUR 0.42, compared to EUR 0.38 in 2000 (+10%). On December 31st, 2001, the signed project backlog amounted to EUR 1,408 mil.

In 2001, the expenses for researching and developing INTRACOM products reached EUR 73 mil. (+33%), company investments totaled EUR 77,3 million, while its workforce increased substantially rising to 4,119 employees, compared to 3,884 at the end of 2000.

Contracts-Estimations 2002

According to company estimations, the year 2002 will constitute a landmark in the history of INTRACOM.

By 15/5/2002, contracts and procurements were signed, worth 200 million EUR, 135 million EUR of which is related to exports.

By the end of 2002, it is expected that the contracts and procurements to be signed will total 500 million EUR, 200 million of which pertain to company exports. Consequently, at the end of 2002, company project backlog will amount to 1,320 million EUR.

For the period 2002, it is anticipated that company sales will reach 790 million EUR (+2,5%), profits before tax 132 million EUR. (+3%), exports 335 million EUR (+28%), and research and development costs will come to 80 million EUR (+10%).

At a consolidated base (INTRACOM Group), it is expected that during 2002, sales will rise to 1 billion EUR (+4%), while profits before tax will amount to 168 million EUR (+6%).

In conclusion, according to INTRACOM's business plan, within the period 2002 - 2006, sales are expected to reach 5 billion EUR, exports will rise to 2.35 billion EUR, while investments will amount to 880 million EUR.

Athens Information Technology Institute

INTRACOM Group, regularly investing in research and scientific & technological development, founded the Athens Information Technology Institute (AIT), which will offer courses at post-graduate level and conduct research in the fields of telecommunications, information technology , and integrated systems. The Institute will commence its operation next September.

During his speech at INTRACOM General Annual Assembly, Mr. Socrates Kokkalis underlined AIT's maiden international success in signing a partnership agreement with Carnegie Mellon University (CMU), Pittsburgh, U.S.A. CMU is currently considered one of the leading Universities in the field of state-of-the-art technology, while its Electrical and Computer Engineering Department (post-graduate training and research) is ranked first in the U.S.A., according to a recent research by US News & World Report Magazine.

Furthermore, INTRACOM Group will offer a substantial number of scholarships, covering all educational expenses, while graduates will be presented with the opportunity to work in companies of the Group.