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Hellenic Fabrics: Announcement

Within the framework of the release of  HELLENIC FABRICS S.A. Group’s financial statements for the period 01.01-30.09.2011 and in accordance to paragraph of ATHEX Regulation, the investing public is herewith informed that the ATHEX Board of Directors, during its session of Thursday, 24.11.2011, decided the transfer of the company’s shares to the “Under Supervision Category”, valid as from Friday, 25.11.2011, taking into consideration that the company’s annual financial report of 31.12.2010 reported losses in excess of 30%of the company’s total equity, while the share capital increase is not foreseen to be completed until 31.12.2011.
The Group’s management has already initiated a series of actions, aiming to the improvement of the company’s efficiency and the reduction of losses in order to eliminate the grounds that led to the transfer of the company’s shares to the “Under Supervision Category”, as follows:
maintain the 2010-2011 sales price levels of denim fabrics in order to take full advantage of the drop of raw material prices (cotton), prevailing during 2011-2012 cotton ginning period, 

further reduction of the production cost factor on the final cost per meter of denim fabric and

additional cost reduction, through reorganization and development of synergies between its operations, like merging of administration and supporting departments.

In any case, within the Management’s intentions is to call a general meeting of company’s shareholders soon, possibly during the first semester of 2012, in order to decide on a share capital increase, which was not possible to be realized until today, due to the general economic situation.

It is also noted that due to the limited time until the deadline for the release of the financial statements for the third quarter of 2011, they were published in time without the Auditor’s certificate, which is required according to paragraph of the ATHEX  Regulation, provided that these statements will be republished until 05.12.2011, together with the Auditor’s certificate.
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