Intracom S.A. Holdings

Quarterly Report • Sep 25, 2015

INTRACOM Holdings S.A.

Interim 3-monthly condensed financial statements in accordance with International Accounting Standard 34

31 March 2008

These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over this document.

Contents Page

Balance sheet		2
Income Statement		3
Statement of changes in equity		5
Cash flow statement		7
	Notes to the interim condensed financial statements	8
1. General information		8
2.	Summary of significant accounting policies	8
3. Reclassification of amounts		10
4. Segment Information		10
5. Capital expenditure		11
6.	Available-for-sale financial assets	12
7. Long-term loans receivable		12
8. Share Capital		12
9. Borrowings		13
10. Finance income / (expenses) – net		13
11. Income tax expense		13
12. Earnings per share		14
13. Cash generated from operations		15
	14. Contingencies / Outstanding legal cases	16
15. Commitments		16
16. Related party transactions		17
17. Post balance sheet events		18
18. List of subsidiaries / associates		18

Balance sheet

		Group		Company
ASSETS Non-current assets	Note	31/3/2008	31/12/2007	31/3/2008	31/12/2007
Property, plant and equipment	5	296.190	277.276	39.071	39.265
Goodwill		60.047	60.047	-	-
Intangible assets	5	32.823	32.084	3.263	3.654
Investment property	5	56.197	50.049	61.044	55.244
Investments in subsidiaries		-	-	223.982	223.982
Investments in associates		116.413	117.475	116.175	116.175
Available - for - sale financial assets	6	28.269	24.525	23.356	16.769
Deferred income tax assets		1.531	1.616	-	-
Long-term loans	7	7.332	-	7.332	-
Trade and other receivables		29.012	31.027	12.238	12.238
		627.814	594.099	486.461	467.327
Current assets
Inventories		48.571	48.987	-	-
Trade and other receivables		318.021	306.071	39.391	43.683
Construction contracts		23.136	20.772	-	-
Financial assets at fair value through profit or loss		914	1.245	-	-
Current income tax assets		13.716	13.848	4.979	4.971
Cash and cash equivalents		52.106	76.573	16.152	32.935
		456.464	467.497	60.522	81.589
Total assets		1.084.277	1.061.596	546.982	548.917
EQUITY
Capital and reserves attributable to the Company's
equity holders
Share capital	8	374.047	374.047	374.047	374.047
Reserves		124.327	136.942	135.369	137.433
		498.374	510.989	509.416	511.480
Minority interest		27.746	29.005	-	-
Total equity		526.120	539.993	509.416	511.480
LIABILITIES
Non-current liabilities
Borrowings	9	66.106	63.935	-	-
Deferred income tax liabilities		5.617	5.198	484	355
Retirement benefit obligations		4.338	4.053	526	530
Grants		1.580	1.763	-	-
Provisions for other liabilities and charges		1.449	957	-	-
Trade and other payables		10.796	7.928	-	-
		89.885	83.834	1.009	885
Current liabilities
Trade and other payables		233.714	242.094	22.653	22.645
Current income tax liabilities		6.768	5.948	988	988
Construction contracts		5.648	2.460	-	-
Borrowings	9	214.334	180.598	12.774	12.777
Provisions for other liabilities and charges		7.807	6.668	142	142
Total liabilities		468.272 558.158	437.769 521.603	36.557 37.566	36.552 37.436
Total equity and liabilities		1.084.277	1.061.596	546.982	548.917

Income Statement

Group

	Note	1/1 - 31/3/2008	1/1 - 31/3/2007
Sales	4	112.650	96.577
Cost of goods sold		(92.409)	(77.908)
Gross profit		20.241	18.669
Other operating income		1.023	1.343
Other gains/ (losses) - net		(401)	15
Selling and research costs		(10.732)	(9.303)
Administrative expenses		(12.455)	(12.123)
Operating loss	4	(2.323)	(1.399)
Finance expenses	10	(5.374)	(2.708)
Finance income	10	417	2.421
Finance income/ (expenses)-net		(4.957)	(287)
Share of profit/ (loss) of associates		(1.019)	428
Loss before income tax		(8.300)	(1.258)
Income tax expense	11	(2.021)	427
Loss for the year		(10.321)	(831)
Attributable to:
Equity holders of the Company		(9.947)	(990)
Minority interest		(374)	159
		(10.321)	(831)

Basic	12	(0,08)	(0,01)
Diluted	12	(0,08)	(0,01)

Income Statement

Company

		1/1 - 31/3/2008	1/1 - 31/3/2007
	Note
Sales		1.701	3.477
Cost of goods sold		(1.560)	(3.232)
Gross profit		141	245
Other operating income		751	706
Other gains/ (losses) - net		(33)	9
Selling and research costs		(98)	(44)
Administrative expenses		(2.535)	(1.395)
Operating loss		(1.774)	(479)
Finance expenses	10	(292)	(389)
Finance income	10	75	2.128
Finance income/ (expenses)-net		(217)	1.739
(Loss)/ profit before income tax		(1.991)	1.260
Income tax expense	11	(129)	(235)
(Loss)/ profit for the year		(2.120)	1.025
Earnings per share for profit/ (loss) attributable to the equity holders of the

Company during the year (expressed in € per share)

Basic	12	(0,02)	0,01
Diluted	12	(0,02)	0,01

Statement of changes in equity

Group

		Attributable to equity holders of the Company
		Note Share capital	Other reserves	Retained earnings	Minority interest	Total equity
Balance at 1 January 2007		377.329	191.294	(5.272)	20.197	583.549
Profit / (loss) for the period		-	-	(990)	159	(831)
Valuation of available - for - sale financial assets		-	513	-	172	685
Currency translation differences		-	(75)	-	1	(74)
Total recognised income and expense		-	437	(990)	332	(219)
Treasury shares		(404)	-	-	-	(404)
Expenses on issue of share capital		(12)	-	-	-	(12)
Effect of changes in the group structure		-	1.171	(1.171)	4.257	4.257
Transfer		-	(275)	(320)	595	-
		(417)	896	(1.491)	4.852	3.840
Balance at 31 March 2007		376.912	192.628	(7.753)	25.383	587.170
Balance at 1 January 2008		374.047	186.632	(49.690)	29.005	539.994
Loss for the period		-	-	(9.947)	(374)	(10.321)
Valuation of available - for - sale financial assets	6	-	(2.035)	-	(752)	(2.787)
Currency translation differences		-	(633)	-	(133)	(766)
Total recognised income and expense		-	(2.668)	(9.947)	(1.259)	(13.874)
Transfer		-	327	(327)	-	-
		-	327	(327)	-	-
Balance at 31 March 2008		374.047	184.291	(59.964)	27.746	526.120

Statement of changes in equity

Company

	Note	Share capital	Other reserves	Retained earnings	Total equity
Balance at 1 January 2007		377.329	159.500	35	536.864
Profit for the period		-	-	1.025	1.025
Valuation of available - for - sale financial assets		-	34	-	34
Total recognised income and expense		-	34	1.025	1.060
Treasury shares		(404)	-	-	(404)
Expenses on issue of share capital		(12)	-	-	(12)
Balance at 31 March 2007		376.912	159.534	1.060	537.507
Balance at 1 January 2008		374.047	143.281	(5.848)	511.480
Loss for the period		-	-	(2.120)	(2.120)
Valuation of available - for - sale financial assets	6	-	56	-	56
Total recognised income and expense		-	56	(2.120)	(2.064)
Balance at 31 March 2008		374.047	143.337	(7.968)	509.416

Cash flow statement

	Group		Company
	Note		1/1 - 31/3/2008 1/1 - 31/3/2007 1/1 - 31/3/2008		1/1 - 31/3/2007
Cash flows from operating activities
Cash generated from operations	13	(6.991)	6.738	1.952	3.526
Interest paid		(5.374)	(2.708)	(292)	(389)
Income tax paid		(850)	(606)	(8)	(272)
Net cash generated from operating activities		(13.215)	3.424	1.652	2.865
Cash flows from investing activities
Purchase of property, plant and equipment (PPE)		(20.664)	(1.973)	(3)	(44)
Purchase of investment property		(6.445)	(8)	(6.000)	-
Purchase of intangible assets		(3.129)	(171)	-	-
Proceeds from sale of PPE Acquisition of financial assets at fair value through profit or loss		226 (63)	114 (6)	- -	4 -
Acquisition of available - for - sale financial assets Sale of financial assets at fair value through profit or loss	6	(6.532) 74	- 38	(6.532) -	- -
Sale of available - for - sale financial assets		-	22	-	-
Acquisition of subsidiary, net of cash acquired		-	-	(170)	-
Change in method of consolidation due to acquisition of control Dividends received		- -	2.123 -	- 1.700	- -
Interest received		417	1.082	75	788
Loans granted	7	(7.332)	-	(7.332)	-
Net cash from investing activities		(43.446)	1.221	(18.260)	748
Cash flows from financing activities
Purchase of treasury shares		-	(404)	-	(404)
Expenses on issue of share capital		-	(12)	-	(12)
Dividends paid to shareholders		(172)	(105)	(172)	(105)
Proceeds from borrowings		51.115	18.267	-	-
Repayments of borrowings		(18.443)	(13.245)	-	(85)
Grants received		-	1	-	-
Repayments of finance leases		(307)	(287)	(3)	(3)
Net cash from financing activities		32.194	4.215	(175)	(609)
Net increase/(decrease) in cash and cash equivalents		(24.467)	8.859	(16.783)	3.004
Cash and cash equivalents at beginning of period		76.573	115.477	32.935	72.531
Cash and cash equivalents at end of period		52.106	124.337	16.152	75.535

Notes to the interim condensed financial statements

1. General information

Intracom Holdings was founded in Greece and the Company's shares are traded in Athens Stock Exchange.

Intracom Group operates, through the subsidiaries and associates, in developing products, providing services and undertaking complex, integrated and advanced technology projects in the telecommunications, defence, public administration, and banking & finance industries and has also activities in the construction sector and the telecommunications sector. The parent company operates as a holding company.

The Group operates in Greece, U.S.A, Bulgaria, Romania, as well as in other foreign countries (see note 18).

The Company's registered office is at 19 km Markopoulou Ave., Peania Attikis, Greece. Its website address is www.intracom.com.

These interim condensed financial statements of the Group and the Company have been approved for issue by the Board of Directors on 16 May 2008.

2. Summary of significant accounting policies

These interim condensed financial statements consist of the stand alone financial statements of Intracom Holdings S.A. (the "Company") and the consolidated financial statements of the Company and its subsidiaries (the "Group") for the period 1/1 – 31/3/2008. They have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting".

These interim condensed financial statements must be examined together with the annual financial statements for the year 2007, as published on the Group's website www.intracom.com.

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets at fair value through profit or loss and derivative financial instruments.

Standards effective in 2008

IFRIC 12 'Service Concession Arrangements'

IFRIC 12 outlines an approach to account for contractual (service concession) arrangements arising from entities providing public services. It provides that the operator should not account for the infrastructure as property, plant and equipment, but recognise a financial asset and/or an intangible asset. The Group is in the process of assessing the impact of this standard on its financial statements.

IFRIC 14 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction'

IFRIC 14 provides guidance on how to assess the limit on the amount of surplus in a defined benefit scheme that can be recognised as an asset under IAS 19 Employee Benefits. It also explains how this limit, also referred to as the "asset ceiling test", may be influenced by a minimum funding requirement and aims to standardize current practice. The Group expects that this Interpretation will have no impact on its financial position or performance as the Group does not operate any funded plans.

Standards/ interpretations that are not yet effective and have not been early adopted by the Group

Amendment to IAS 23 'Borrowing costs' (effective for annual periods beginning on or after 1 January 2009)

The benchmark treatment in the existing standard of expensing all borrowing costs to the income statement is eliminated in the case of qualifying assets. All borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset must be capitalised. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. In accordance with the transitional requirements of the Standard, the Group will adopt this as a prospective change. Accordingly, borrowing costs will be capitalised on qualifying assets with a commencement date after the effective date. No changes will be made for borrowing costs incurred to this date that have been expensed.

Amendments to IFRS 2 'Share Based Payment' – Vesting Conditions and Cancellations (effective for annual periods beginning on or after 1 January 2009)

The Group expects that this Interpretation will have no impact on its financial statements.

IFRS 8 'Operating Segments' (effective for annual periods beginning on or after 1 January 2009)

IFRS 8 replaces IAS 14 'Segment Reporting' and adopts a management-based approach to segment reporting. The information reported would be that which management uses internally for evaluating the performance of operating segments and allocating resources to those segments. This information may be different from that reported in the balance sheet and income statement and entities will need to provide explanations and reconciliations of the differences. The Group is in the process of assessing the impact of this standard on its financial statements and will adopt IFRS 8 from 1 January 2009.

Revisions to IFRS 3 'Business Combinations' and IAS 27 'Consolidated and Separate Financial Statements' (effective for annual periods beginning on or after 1 July 2009)

A revised version of IFRS 3 Business Combinations and an amended version of IAS 27 Consolidated and Separate Financial Statements were issued by IASB on January 10, 2008. IFRS 3R introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value of contingent consideration in the profit or loss (rather than by adjusting goodwill). IAS 27R requires that a change in ownership interest of a subsidiary is accounted for as an equity transaction. Therefore such a change will have no impact on goodwill, nor will it give raise to a gain or loss. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by IFRS 3 and IAS 27 must be applied prospectively and will affect future acquisitions and transactions with minority interests.

Amendments to IAS 1 'Presentation of Financial Statements'

IAS 1 has been revised to enhance the usefulness of information presented in the financial statements and is effective for annual periods beginning on or after 1 January 2009. The key changes are: the requirement that the statement of changes in equity include only transactions with shareholders, the introduction of a new statement of comprehensive income ("comprehensive income") that combines all items of income and expense recognised in profit or loss together with "other comprehensive income", and the requirement to present restatements of financial statements or retrospective application of a new accounting policy as at the beginning of the earliest comparative period. The Group will apply these amendments and make the necessary changes to the presentation of its financial statements in 2009.

Amendments to IAS 32 and IAS 1 Puttable Financial Instruments (effective for annual periods beginning on or after 1 January 2009)

The Group does not expect these amendments to impact the financial statements of the Group.

IFRIC 13 'Customer Loyalty Programmes' (effective for annual periods beginning on or after 1 July 2008)

The Group expects that this Interpretation will have no impact on its financial statements as no such schemes currently exist.

3. Reclassification of amounts

On 4 December 2006 the Company agreed to the sale of 51% of HoL (100% subsidiary), while on 6 July 2007 the Company announced the termination of this sale agreement. For the period following the signing of the sales agreement and up to its termination, HoL was classified in the consolidated financial statements as held for sale. As a consequence, the results of HoL group in the interim financial statements of the period 1/1-31/3/2007 were shown under discontinued operations. In the current period, as well as in the comparative period of 1/1-31/3/2007, the results from the operations of the subsidiary are shown under continuing operations. As a result, the notes concerning the income statement of the previous period differ from those included in the published interim financial statements of the first quarter of 2007, as the amounts have been reclassified according to the requirements of IFRS 5 'Non-current assets held for sale and discontinued operations'.

Differences between amounts presented in the financial statements and corresponding amounts in the notes result from rounding differences.

4. Segment Information

The segment results from continuing operations for the period 1/1-31/3/2008 were as follows:

	Telecommunications systems	Technology solutions for government and banking sector	Defence systems	Construction	Telecom operations	Unallocated	Total
Sales	7.131	35.347	17.302	31.134	21.451	285	112.650
Operating profit/(loss) Finance costs - net Share of profit/ (loss) of	(158)	2.033	940	1.994	(5.347)	(1.784)	(2.323) (4.957)
associates	(1.040)	-	-	(15)	-	36	(1.019)
Loss before income tax							(8.300)

The segment results from continuing operations for the period 1/1-31/3/2007 were as follows:

	Telecommunications systems	Technology solutions for government and banking sector	Defence systems	Construction	Telecom operations	Unallocated	Total
Sales	7.761	29.052	21.777	28.600	7.724	1.662	96.577
Operating profit/(loss) Finance costs - net Share of profit/ (loss) of	329	967	1.396	388	(3.991)	(488)	(1.399) (287)
associates	150	(71)	-	365	-	(15)	428
Loss before income tax							(1.258)

The segment of telecom operations includes the operations of the Hellas on Line group, the assets of which had been classified in the interim financial statements of the period 1/1-31/3/2007 as held for sale (see note 3). Consequently, the results for that period do not include depreciation and amortisation expense of around €1.275 relating to the Hellas on Line Group. In addition, the segment of telecom operations for the period 1/1-31/3/2008 includes the operations of the subsidiary company Attica Telecoms S.A., which was acquired in April 2007. Total sales of the subsidiary company for the current period (after intercompany eliminations) was €4.133.

5. Capital expenditure

Group

	Property, plant	Intangible	Investment
	and equipment	assets	property	Total
Net book amount at 1 January 2007	144.097	13.264	63.170	220.531
Additions	2.025	171	-	2.195
Acquisition of subsidiaries	158	1.219	8	1.385
Disposals	(114)	-	-	(114)
Depreciation charge	(2.010)	(1.311)	(141)	(3.463)
Transfers	(1)	-	1	-
Other movements	54	20	(30)	44
Net book amount at 31 March 2007	144.208	13.363	63.008	220.579
Net book amount at 1 January 2008	277.276	32.084	50.049	359.409
Additions	24.350	3.129	6.445	33.924
Disposals	(230)	(1)	-	(231)
Depreciation charge	(5.101)	(2.478)	(135)	(7.713)
Other movements	(105)	88	(162)	(179)
Net book amount at 31 March 2008	296.190	32.823	56.197	385.210

Company

	Property, plant and equipment	Intangible assets	Investment property	Total
Net book amount at 1 January 2007	55.272	5.253	46.603	107.129
Additions	44	-	-	44
Disposals	(1)	-	-	(1)
Depreciation charge	(390)	(409)	(132)	(930)
Net book amount at 31 March 2007	54.926	4.845	46.472	106.242
Net book amount at 1 January 2008	39.265	3.654	55.244	98.163
Additions	148	-	6.000	6.148
Disposals	(1)	-	-	(1)
Depreciation charge	(341)	(391)	(201)	(932)
Net book amount at 31 March 2008	39.071	3.263	61.044	103.378

Total acquisitions of property, plant and equipment for the Group and the Company during the three month period ended 31 March 2008 amounted to €30.795 and €6.148 respectively (31 March 2007: €2.025 and €44 for the Group and the Company respectively). Total additions to intangible assets for the three month period ended 31 March 2008 amounted to €3.129 for the Group and nil for the Company (31 March 2007: €171 and nil for the Group and the Company respectively).

6. Available-for-sale financial assets

	Group		Company
	31/3/2008	31/12/2007	31/3/2008	31/12/2007
Balance at the beginning of the period	24.525	12.010	16.769	9.030
Additions	6.532	1.639	6.532	1.600
Acquisition of subsidiary/ Change in method of
consolidation	-	110	-	-
Disposals	-	(15)	-	-
Fair value gains / (losses)	(2.787)	1.782	56	(3.093)
Impairment	-	(107)	-	(107)
Transfer from associates	-	9.106	-	9.340
Balance at the end of the period	28.269	24.525	23.356	16.769

7. Long-term loans receivable

The Company participated in the issue by Moreas SA of a subordinated bond loan of a total amount of €55.000. The Company participated in the issue of the bond loan up to its percentage shareholding in Moreas SA (13,33%), paying an amount of €7.332. The loan carries a floating interest rate (6m Euribor plus 4% margin).

8. Share Capital

	Number of shares	Share capital Share premium		Treasury shares	Total
Balance at 1 January 2007	132.122.415	187.442	194.102	(4.215)	377.329
Employee share option scheme
Value of services provided	88.581	125	116	-	241
Expenses on issue of share capital	-	-	(14)	-	(14)
	132.210.996	187.567	194.204	(4.215)	377.556
Treasury shares	(865.815)	-	-	(3.509)	(3.509)
Balance at 31 December 2007	131.345.181	187.567	194.204	(7.724)	374.047
Balance at 31 March 2008	131.345.181	187.567	194.204	(7.724)	374.047

9. Borrowings

		Group		Company
	31/3/2008	31/12/2007	31/3/2008	31/12/2007
Bank loans	207.735	174.971	12.774	12.774
Finance lease liabilities	10.708	7.473	-	3
Bond loans	61.998	62.090	-	-
Total borrowings	280.441	244.533	12.774	12.777
Non-current borrowings	66.106	63.935	-	-
Current borrowings	214.334	180.598	12.774	12.777
	280.441	244.533	12.774	12.777

10. Finance income / (expenses) – net

	Group		Company
	1/1 - 31/3/2008	1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Finance expenses
- Bank borrowings	(3.593)	(1.729)	(292)	(51)
- Bond loans	(840)	(31)	-	-
- Finance leases	(117)	(21)	-	-
- Letters of credit and related costs	(824)	(927)	(1)	(338)
	(5.374)	(2.708)	(292)	(389)
Finance income
Interest income	167	1.012	60	788
Net gains from derivative financial instruments	-	1.339	-	1.339
Other	249	70	15	-
	417	2.421	75	2.128
Finance (expenses) / income - net	(4.957)	(287)	(217)	1.739

The net gains from derivatives in the first quarter of 2007 relate to interest rate swaps of €100.000 nominal value. The Company closed these positions during 2007.

11. Income tax expense

	Group		Company
	1/1 - 31/3/2008	1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Current tax	1.571	1.001	-	-
Deffered tax	450	(1.428)	129	235
Total	2.021	(427)	129	235

On December 2007, the Board of Directors of the subsidiaries Unibrain S.A. and Hellas on Line S.A. decided their merger via the absorption of the second by the first company. According to the greek tax laws, the tax losses cannot be transferred to the new company and consequently deferred tax assets on tax losses of €2.162, which had been charged in the period 1/1-31/3/2007, were written off in the year 2007.

The increase in the income tax expense of the current period is due mainly to the tax provision on the profits of the subsidiary company Attica Telecoms S.A. The subsidiary was acquired in April 2007 and as a result it is not included in the comparatives.

12. Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit / (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Company and held as treasury shares.

	Group		Company
		1/1 - 31/3/2008 1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Profit / (loss) attributable to equity holders of the Company	(9.947)	(990)	(2.120)	1.025
Weighted average number of ordinary shares in issue (thousands)	131.257	132.118	131.257	132.118
Basic earnings per share (€ per share)	(0,08)	(0,01)	(0,02)	0,01

Diluted earnings per share

Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares, such as stock options. For the share options a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

	Group		Company
		1/1 - 31/3/2008 1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Profit / (loss) attributable to equity holders of the Company	(9.947)	(990)	(2.120)	1.025
Weighted average number of ordinary shares in issue (thousands) Adjustment for	131.257	132.118	131.257	132.118
Share options (thousands)	-	140	-	140
Weighted average number of ordinary shares for diluted earnings per share (thousands)	131.257	132.258	131.257	132.258
Diluted earnings per share (€ per share)	(0,08)	(0,01)	(0,02)	0,01

13. Cash generated from operations

	Group		Company
	1/1 - 31/3/2008	1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Profit/ (loss) for the period	(10.321)	(831)	(2.120)	1.025
Adjustments for:
Tax	2.021	(427)	129	235
Depreciation of PPE	5.101	2.010	341	390
Amortisation of intangible assets	2.478	1.311	391	409
Depreciation of investment property	135	141	201	132
Loss / (profit) on sale of PPE	4	-	1	(2)
Fair value losses of financial assets at fair value through profit or loss	308	29	-	-
Losses from sale of financial assets at fair value through profit or loss	11	-	-	-
Gains from sale of available-for-sale financial assets	-	(9)	-	-
Interest income	(417)	(1.082)	(75)	(788)
Interest expense	5.374	2.708	292	389
Depreciation of grants received	(184)	(178)	-	-
Share of profit / (loss) from associates	1.019	(428)	-	-
Movements in subsidiary held for sale and change in method of consolidation	-	4.256	-	-
Exchange losses	(541)	(78)	-	(2)
	4.988	7.422	(841)	1.785
Changes in working capital
Inventories	416	2.382	-	-
Trade and other receivables	(13.021)	(16.215)	2.593	(2.432)
Trade and other payables	(1.292)	16.471	205	5.512
Provisions for other liabilities and charges	1.631	(1.945)	-	-
Retirement benefit obligations	286	(36)	(4)	-
Derivative financial instruments	-	(1.339)	-	(1.339)
	(11.979)	(684)	2.793	1.741
Cash generated from operations	(6.991)	6.739	1.952	3.526

14. Contingencies / Outstanding legal cases

The Group and the Company have contingent liabilities in respect of banks, other guarantees and other matters arising in the ordinary course of business as follows:

	Group		Company
	31/3/2008	31/12/2007	31/3/2008	31/12/2007
Guarrantees for advance payments	91.266	92.771	63.513	65.159
Guarrantees for good performance	121.107	122.250	69.923	69.335
Guarrantees for participation in contests	9.983	15.872	9.983	10.483
Other	7.451	5.183	-	-
	229.807	236.076	143.420	144.976

The Company has given guarantees to banks for subsidiaries' loans amounting to €303.791 and for finance lease contracts amounting to €8.066.

In addition, the Company has guaranteed the contractual liabilities of an associate company.

Outstanding legal cases

There is an outstanding legal case against a subsidiary company from the Ministry of Merchant Marine (MMM) concerning violations during the execution of a project completed and delivered to the MMM in a prior period. The penalties and rebates that were initially claimed amounted to €29 mil., amount which has been reduced to €9 mil., following a settlement, out of which an amount of €2,8 mil. was rendered payable under a court decision and will be settled in 48 monthly instalments. It is assessed that this amount will be reduced further. The lawyers of the Company in their letter set out that the information on the basis of which the penalties were imposed show serious inadequacies and that the final outcome will be favorable to the Company.

On 4 March 2008, the major shareholders of Teledome S.A. took legal action against Intracom Holdings, two subsidiary companies and key management personnel, due to the annulment of the earlier decision for the merger of Hellas on Line, Unibrain and Teledome. Through this lawsuit, amounts of approximately €90 mil. are claimed from the parent company and from subsidiaries. The Group's management and its lawyers assess that the possibility of any material liabilities arising for the Group in relation to this case is very low.

Unaudited tax years

The Company has not been audited by the tax authorities for the year 2007 and consequently its tax liabilities for this year have not been rendered final. Due to the existence of tax losses the Company does not expect that additional taxes will arise.

Accordingly, there are unaudited tax years for subsidiary companies of the Group and consequently their tax liabilities have not been rendered final. The unaudited tax years for the group companies are presented in note 18.

It is not anticipated that any material liabilities will arise from the contingent liabilities.

15. Commitments

As at the balance sheet date there were capital commitments for PPE of €32.809 for the Group and nil for the Company (31/12/2007: €31.562 for the Group and nil for the Company).

16. Related party transactions

The following transactions are carried out with related parties:

		Group		Company
	1/1 - 31/3/2008	1/1 - 31/3/2007	1/1 - 31/3/2008	1/1 - 31/3/2007
Sales of goods / services:
To subsidiaries	-	-	1.480	1.767
To other related parties	2.586	3.637	135	252
	2.586	3.637	1.615	2.020
Purchases of goods / services:
From subsidiaries	-	-	67	88
From other related parties	2.160	2.576	-
	2.160	2.576	67	88
Rental income:
From subsidiaries	-	-	383	77
From other related parties	271	208	224	163
	271	208	607	240
Purchases of fixed assets:
From subsidiaries	-	-	-	11
From other related parties	3.227	-	-	-
	3.227	-	-	11

Services from and to related parties, as well as sales and purchases of goods take place on the basis of the price lists in force with non-related parties. Other related parties are mainly associates and companies in which the major shareholder of the Company holds an interest share.

Year-end balances arising from transactions with related parties are as follows:

	Group		Company
	31/3/2008	31/12/2007	31/3/2008	31/12/2007
Receivables from related parties:
From subsidiaries	-	-	14.945	18.214
From other related parties	38.605	41.897	15.805	15.125
	38.605	41.897	30.750	33.339
Payables to related parties
To subsidiaries	-	-	1.914	2.182
To other related parties	44.740	41.070	16.099	13.152
	44.740	41.070	18.013	15.334

Key management compensation

For the three months to 31 March 2008, a total of €323 was paid by the Company as key management compensation (1/1-31/3/2007: €337).

17. Post balance sheet events

The merger agreement of Unibrain and Hellas on Line was signed on 5/3/2008. The merger was approved by the Extraordinary General Meetings of the two companies on 21/4/2008 and by the relevant governmental bodies on 7/5/2008.

On 9/04/2008 it was agreed that the Joint Venture EUROKAT-ETBO would be dissolved. The joint venture was included in the consolidated financial statements of Intrakat Group for the period 1/1-31/3/2008 using the proportional consolidation method through the subsidiary EUROKAT ΑΤΕ, with a percentage interest of 50%.

18. List of subsidiaries / associates

Information about the subsidiaries and associates, as well as the joint ventures of the Group as at 31 March 2008 is presented below.

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Intracom S.A Defence Electronic Systems	Greece	100%	Full	2007
* HELLAS ON LINE	Greece	92%	Full	-
- Attica Telecommunications SA**	Greece	100%	Full	-
* Intracom Holdings International Ltd	Cyprus	100%	Full	From establishment -2007
- Intracom Technologies Ltd	Cyprus	100%	Full	From establishment -2007
- Fornax RT	Hungary	67%	Full	2003, 2006-2007
- Fornax Integrator	Hungary	100%	Full	2001-2007
- Fornax Informatika Doo Croatia	Croatia	100%	Full	2005-2006
- Fornax Slovakia	Slovane	100%	Full	2005-2007
- Intracom Operations Ltd	Cyprus	100%	Full	From establishment -2007
- Intracom Group USA	USA	100%	Full	From establishment -2007
* Intracom IT Services	Greece	100%	Full	From establishment -2007
- Global Net Solutions Ltd	Bulgary	100%	Full	From establishment -2007
- Dialogos SA	Greece	39%	Full	2004-2007
-Data Bank SA	Greece	90%	Full	From establishment -2007
- Intracom Jordan Ltd	Jordan	80%	Full	2007
- Intracom IT Services Denmark AS**	Denmark	100%	Full	Established in 2007
- Intracom Exports Ltd	Cyprus	100%	Full	From establishment -2007
- Intracom Cyprus Ltd	Cyprus	100%	Full	From establishment -2007
- Intrasoft International SA	Luxemburg	97%	Full	2007
- PEBE SA	Belgium	100%	Full	From establishment -2007
- Intrasoft SA	Greece	99%	Full	2006-2007
- Intrasoft International Belgium	Belgium	100%	Full	2004-2006
- Switchlink NV	Belgium	65%	Full	From establishment -2007
- Unibrain SA	Greece	28%	Full	2007
- Unibrain Inc	USA	100%	Full	From establishment -2007

* Direct holding

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Intrakat SA	Greece	74%	Full	2006-2007
- Inmaint SA	Greece	60%	Full	2005-2007
- ΚEPA Attica SA	Greece	51%	Full	2005-2007
- Intracom Construct SA	Romania	94%	Full	2006-2007
- Eurokat SA	Greece	82%	Full	2006-2007
- Intrakat International Ltd**	Cyprus	100%	Full	-
- Intradevelopment SA	Greece	100%	Full	2004-2007
J./V. Mohlos - Intrakat (Tennis.)	Greece	50%	Equity	2006-2007
J./V. Mohlos - Intrakat (Swimm.)	Greece	50%	Equity	2003-2007
J./V. Panthessalikon Stadium	Greece	15%	Equity	2003-2007
J./V. Elter-Intrakat (EPA Gas)	Greece	45%	Equity	2003-2007
J./V. Intrakat - Gatzoulas	Greece	50%	Equity	2004-2007
J./V. Elter-Intrakat-Εnergy	Greece	40%	Equity	2005-2007
J./V. "Αth.Techniki-Prisma Domi"-Ιntrakat	Greece	50%	Equity	2005-2007
J./V. Intrakat-Ergaz-ALGAS	Greece	33%	Equity	2005-2007
J./V. Intrakat - Elter (Maintenance N.Section)	Greece	50%	Proportional	2006-2007
J./V. Intrakat - ΑΤΤΙΚΑΤ (Εgnatia Οdos)	Greece	50%	Proportional	2006-2007
J./V. Intrakat - Elter (Alex/polis pipeline)	Greece	50%	Proportional	2006-2007
J./V. Intrakat - Elter (Xiria)	Greece	50%	Proportional	2006-2007
J./V. Intrakat - Elter (Road diversion- Arta)	Greece	30%	Proportional	2006-2007
J./V. Intrakat - Elter (Natural gas installation	Greece	30%
project- Schools)			Proportional	2006-2007
J./V. Intrakat - Elter ( Natural Gas Installation Project Attica Northeast & South )	Greece	49%	Proportional	2006-2007
J./V. Intrakat - Intracom Telecom (DEPA Network)	Greece	70%	Proportional	2007
J./V. Intrakat - Elter (Broadband networks)	Greece	50%	Proportional	2007
J./V. Intrakat - Elter (Natural Gas installation project - Schools EPA 3)	Greece	50%	Proportional	2007
J./V. Intrakat - Elter (Natural Gas pipelines 2007
Northeastern Attica Region-EPA 4)	Greece	50%	Proportional	2007
J./V.Intrakat- Elter(Gas Distrib.Network Expansion)	Greece	50%	Proportional	2007
J./V. ΑΚΤOR ΑΤΕ - LOBBE TZILALIS - EUROKAT ATE (Ily Administration Κ.Ε.L.)	Greece	33%	Proportional	2007
J./V. ΑΚΤOR ΑΤΕ - Pantechniki SA - Intrakat (J./V. Μoreas)**	Greece	13%	Proportional	-
J./V. Intrakat - Elter (ΕPA 5) - Natural Gas Installation Central Region**	Greece	50%	Proportional	2007
J./V. Intrakat - Elter (EPA 6) - Natural Gas Installation South Region **	Greece	50%	Proportional	2007
J./V. Intrakat - Elter ( Hospital of Aikaterini)**	Greece	50%	Proportional	-
J./V. Intrakat - Elter (Hospital of Corfu)**	Greece	50%	Proportional	-
J./V. Intrakat Elter (EPA 7) - Natural Gas Distribut.Network Attica**	Greece	49%	Proportional	2007
J./V. Ιntrakat Elter -Natural Gas Suppl.Network Lamia-Thiva-Chalkida**	Greece	50%	Proportional	2007
J./V. Eurokat-ΕΤΒO- Central Library Building Construction(Contractor) **	Greece	70%	Proportional	-
J./V. Eurokat-ΕΤΒO-Central Library Building Construction(Executor) **	Greece	50%	Proportional	-

* Direct holding

Name	Country of incorporation	Direct % interest held	Consolidation Method	Unaudited Tax Years
* Moldovan Lottery	Moldova	33%	Equity	2007
* Intracom Telecom Solutions SA	Greece	49%	Equity	2003-2007
-Intracom Bulgaria S.A.	Bulgary	100%	Full	1998-2007
-Intracom Svyaz Ltd.	Russia	100%	Full	From establishment -2007
-Intracom Doo Skopje	FYROM	100%	Full	2006-2007
-Intralban Sha	Albania	95%	Full	2005-2007
-Intrarom S.A.	Romane	67%	Full	2004-2007
-Intracom Telecom Holdings International Ltd	Cyprus	100%	Full	From establishment -2007
- Intracom Middle East L.L.C.	Un.Ar.Emirates	100%	Full	Not applicable
- Connklin Corporation	USA	100%	Full	2001-2007
- Intracom Telecom solutions S.R.L.	Moldove	100%	Full	From establishment -2007
- Intracom doo Belgrade	Serbia	100%	Full	From establishment -2007
- Intracom doo Armenia	Armenia	100%	Full	2007
- Intracom Telecom Technologies Ltd.	Cyprus	100%	Full	From establishment -2007
- Intracom Telecom Operations Ltd.	Cyprus	100%	Full	From establishment -2007
- Intracom Telecom Solutions Saudi Arabia**	Sad.Arabia	95%	Full	Established in 2007

* Direct holding

(**) These companies have been included in the Group for the first time in the current period ending 31 March 2008. Attica Telecoms was acquired by the Group, while the remaining companies were newly established companies.

GANTEK S.A., which was disposed of during the year 2007, and Intrakat Romania SRL, which was merged with Intracom Construct S.A, were included in the consolidated financial statements for the period 1/1- 31/3/2007, but not in the current period's financial statements.