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Altecs Reply To ASE

Following a relevant request by the Athens Exchange regarding recently published articles in the financial press on our subsidiary company Altec Telecoms, we inform you on the following:
Our subsidiary Altec Telecoms, following the illegal and improper action by the Hellenic Telecommunication Organization (OTE) to disrupt the provision of interconnection services, is in a particularly adverse position, while it is evident from the facts that OTEs objective is to eradicate the company and not to settle the financial dispute between itself and Altec Telecoms
The disruption of operation of the companys circuits by OTE has significantly limited its ability to smoothly provide telecommunication services to its customers and given that this condition is sustained, both the companys operational capacity and its financial position may be negatively affected.
However, the specific conduct by OTE was considered by the Hellenic Telecommunications & Post Commission (EETT) as a clear abuse of its dominant position in the telecommunication market and thus our subsidiary intends on exhausting all legal means to maintain its activities, as well as to restore the severe damage is has sustained.
According to the financial results of the 1st half of 2008, our subsidiary Altec Telecoms participates in the consolidated results of Altec with Turnover of 17.5 mil. euro, in results before interest taxes depreciation and amortization (EBITDA) with losses of 4.4 mil. euro. In results after taxes it participates with losses of 5.5 mil. euro, while the net position of the company was negative and on 30/6 amounted to 19.8 mil. euro. The results of Altec Telecoms were negative, as was the case for the overall companies in the sector, a fact that resulted in a negative impact on the total results of the Altec Group. The contribution of Altec Telecoms to the Groups total turnover corresponded to 19%.
If Altec Telecoms was excluded from the consolidated data of Altec, the picture would be improved as regards to the profitability ratios and would result as follows: Turnover 75 mil. euro compared to 92.3 mil., EBITDA 13.4 mil. euro compared to 9 mil., Earnings after taxes 1.9 mil compared to losses of 3.7 mil and net position of 88.8 mil compared to 69 mil euro. All the secondary activities - excluding telecommunications - of the Altec Group, were and remain profitable.
The company continues its efforts to reach an optimum solution for itself, its customers and shareholders, both as regards to financing and as regards to exploring a business partner.
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