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Iaso: 15m For New Investments

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Iaso Group proceeds with a new capital increase, aiming in investing in building and operating infrastructure, debt reduction and strengthening of rehabilitation center “Philoktitis”.

Moreover, the extraordinary general meeting of shareholders will propose the increase of share capital by €5.2m in cash and €11.9m through the issuing of 11.9m new ordinary registered voting shares with a nominal value of €0.44.

Further, the extraordinary general meeting of shareholders of the Company to be held on 29 / 4 will be proposed to increase the share capital by 5.2 million in cash by issuing 11.9 million new ordinary registered voting shares with a nominal value 0.44 million and the proposed price of 1.25 euros, to raise capital of up to 14.9 million rights issue to existing shareholders in the ratio of 0.225 new ordinary shares, nominal value 0.44 euros each old common stock, par value 0.44 euros (ratio 225 nees/1.000 old). It will recommend the offer price can not exceed the share price at the ex-rights date.

According to senior executives of the group, the funds which will be raised, will be allocated in three main directions:

* The participation in capital increase of the subsidiary Hoco by €2m in 2011 and €1m in 2012, in order to finance the operating capital of "Philoktitis", regarding to a strategic investment.

* For investments, totaling €2.5 million on the renovation of hospitals and departments and the improvement of facilities in existing buildings of Iaso and Pediatrics. Also for investing in new medical and biomedical equipment and replacing aged hotel equipment.

* Also, the amount of €0.5 million will be invested in upgrading and adding hardware and software into the existing information systems of the group.
 
Commenting on the proposed increase, Alpha Finance said that, if approved, the capital increase will be successfully covered by insiders, which are doctors and control 60-70% of the shares. It will allow Iaso to address its short term liquidity needs. Moreover, Euromedica’s 10% stake in Iaso will be diluted unless it is sold by the time of the capital increase. Alpha Finance doubts that Euromedica will be able to participate due to its liquidity problems. “All in all, given current macro conditions, the scheduled capital increase it is definitely positive. Moreover, we believe that it will be successful.”

IASO Groups Consolidated Revenue for the FY 2010 amounted to €149,1 million posting a decrease by 16,5% year-on-year while parent company’s was shaped at €87,1 lower by 18,0% , as compared to 2009.

Net earnings after taxes and minority rights of the Group dropped at €-1.9 million versus €13.5 million in 2009 while IASO’s net earnings settled at €8,6 million versus €17,2 in 2009.

Net earnings were burdened with the extraordinary tax charges (€2.88 million), with higher depreciation because of the full operation of IASO Thessalias and with tax audit adjustments.
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