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The National HeraldMARCH 5, 2005

SPECIAL EDITION

In 1879, an entrepreneur namedJohn Boutaris had a vision: to ad-vance the time-honored Greek tra-dition of winemaking. To this end,he founded "J. Boutari & Sons" inthe town of Naoussa in NorthernGreece.

From the very beginning, J.Boutari & Sons S.A. set the stan-dard in Greek winemaking, andquickly became synonymous withthe very best Greece has to offer.Through its consistent focus onquality and innovation, J. Boutari &Sons S.A. has become a modernGreek tradition with innumerabledevotees throughout the world.

Starting out years ago with a sin-gle brand "Boutari Naoussa",Boutari Wineries S.A. today pro-duces over 40 different labels - all ofwhich are quality wines that cater totoday’s discerning global consumer,and cover the full range of tastes andpreferences: estate wines, varietalwines, A.O.C wines, regional wines,special wines and aged wines, as well

as wines for everyday enjoyment.Wines bearing the Boutari and

Cambas labels are exported to thefollowing 37 countries.

Boutari Wineries S.A., is a mem-ber of Boutari Group (J. Boutaris &Son Holding S.A.) and Greece’slargest winemaker. Its headquartersare located in Thessaloniki, and itmaintains offices in Athens andwineries in Naoussa, Goumenissa,Peloponisos, Attica, Santorini andCrete. It currently has over 200 em-ployees.

Naoussa: Where it all beganEighty kilometers northwest of

Thessaloniki, in a region famous forits dark red, full-bodied dry wine,one finds the historic town ofNaoussa. Since the 19th century, thedistinctive wines of Naoussa havebeen in high demand throughoutGreece and beyond.

The current Boutari winery inNaoussa was established in 1935.This location continues to be ofparagon importance for the Compa-ny, since this is where Boutari wineswere first produced, and the centralproduction unit. The Naoussa win-ery has an annual production capac-ity of 14.000.000 liters, two bottlinglines, and 2.200 square meters of un-derground cellars with 3.000 oakbarrels that are used in the maturingprocess.

GoumenissaGoumenissa is the capital of the

province of Paionia in rural Kilkis,less than an hour’s drive north ofThessaloniki. The town is located inthe center of a region renowned forthe quality of its wines for centuries.Two varieties of grape, the "Xino-mavro" and the "Negosca" areblended here to produce the rich,dark red "Goumenissa Boutari" and"Domain Filiria" A.O.C. wine.

Since 1985, the Boutari Wineryin Goumenissa has played a decisiverole in preserving & advancing theviticultural tradition of the region.

SantoriniSantorini, one of the most im-

pressive Cycladic isles of theAegean, has a highly porous surfaceand a unique appearance that werecreated by a series of volcanic erup-tions throughout the ages. The moststriking feature of the island’svineyards is the way its vines are cutback into a shape resembling a bas-ket, a technique developed by localvine-growers to protect the grapes

from the island’s unpredictable me-teorological conditions. The mainlocal varieties are the "Asyrtiko","Athiri" and "Aidani", from whichBoutari produces its lively whitewines, as well as the famous sweetred wine "Vinsanto Boutari".

In 1989, Boutari was the firstwinemaker in Greece to open one ofits wineries to the public. The goal ofthis innovative venture on Santoriniwas to draw attention to this uniquewine-producing region. The wineryhas the capacity to produce

1,100,000 liters of wine each year,and has 190 oak barrels for the age-ing of the wines that are bottledthere.

CreteIn Greek, "Fantaxometocho"

means "ghosts' glebe". According tolocal legends, the name "Fan-taxometocho" was conjured up inorder to protect the area from pi-rates and marauders that wouldroutinely land on Crete’s shores.Today, it's where Boutari, thelargest Greek wine producer, hasestablished its spectacular new win-ery, which is open to the public.

The estate borders the roadleading to the village of Myrtia, thebirthplace of the famous Greekwriter Nikos Kazantzakis, and isvery near to the ancient MinoanPalace at Knossos, one of Greece’sforemost archaeological sites.

Today, the estate has a brandnew state-of-the-art winery, com-pleted in early 2004. The winery of-fers guests a spectacular multime-dia show which has already wontwo awards during the 11th Inter-national Oenovideo Festival inFrance and where Cretan historycomes to life. The winery also of-fers a stately wine cellar withsuperb wines maturing in oak bar-rels, and a guest hall where winesare accompanied by deliciousplates of Cretan cuisine. TheBoutari winery in Crete payshomage to the island's history, andis a landmark of Greece’s vini-cultural future.

It is from the heart of Crete thatBoutari Wineries produces – andexclusively from estate-growngrapes- its white Fantaxometochoand red Skalani wines.

Constantine S. Boutari wasborn in Thessaloniki in 1945, andearned his degree in Economicsfrom the Athens University of Eco-nomics in 1968. He continued hisstudies at a graduate level, re-ceiving his Masters in Business Ad-ministration (MBA) from France’sINSEAD University in 1971.

His professional career beganupon completion of his graduatestudies in France, when he returnedto Greece and started working inthe Commercial Department of thefamily business “Boutari WineriesS.A.”

Today Constantine S. Boutari isthe President and the CEO of theBoutari Company and the Presi-dent of all group subsidiaries:Boutari Wineries S.A., MythosBrewery S.A., Kimi Bottling S.A.He is also the President of AtlasCopco Hellas S.A.

Constantine S. Boutari hasmade a significant contribution tothe development and expansion ofwhat originally started out as a fam-ily business, into an internationalgroup of companies with an illustri-ous 126-year history.

TNH: Mr. Boutari, do you thinkthat Greek wines today can success-fully compete with other producerson the international market?

Boutaris: Our company hasmade a tremendous effort all these

years to create quality wines thatcan represent our country success-fully on the international stage. To-day, I am convinced that our winesare able to take on the best produc-ts being offered not only by the tra-ditional wine producing countriesof "Old Europe" such as France,Spain and Italy, but also those ofthe New World such as the US,Chile, South Africa and Australia.

TNH: Have you seen an in-creased interest in Greek wines in-ternationally after the 2004Olympic Games?

Boutaris: Well, I have definitelyseen an increase in the number ofpeople who want to taste our wines,and this is a tremendous benefit forour business. I’ve been in the winebusiness for decades, and I remem-ber that when I started working inthe export division of our company,the biggest problem that I would en-counter abroad was getting poten-tial clients interested enough totaste our products. I think that thereis a "positive aura" surroundingGreece and anything Greek afterthe Athens Olympics, and we shoulddo all we can to take advantage of it.Greece’s image was greatly en-hanced by the images citizens of theworld saw during the Olympics,since they finally realized that we arean advanced Western nation thathas broken free from thestereotypes of the past.

TNH: Your company was prob-ably one of the first in Greece tocombine business with culture, ascan be seen with the establishmentof your thematic wineries in North-ern Greece, Santorini and nowCrete. Do you think that wine has amajor role to play in expandingGreece’s tourism industry?

Boutaris: Greece will always beone of the world’s premier touristdestinations, since God and our an-cestors have done an excellent job inproviding us with an excellent cli-mate, and a cultural heritage un-matched by any other nation inhistory. I’m not one of those peoplethat would like to see Greece be-come an exclusive tourist desti-nation, catering only to the needs ofthe rich and famous. Greece is waytoo democratic, perhaps too muchso, to ever become the St. Moritz orGstaad of the Mediterranean. WhatI would like to see is a well-balancedand organized tourism industry, of-fering a wide variety of alternativesto everyone that wants to visit ourcountry. For a number of years, ourcompany has made a conscious ef-fort to develop and accentuate thebest wine producing regions ofGreece, and that’s why we’ve cre-ated a series of wineries that wel-come everyone, foreigners andGreeks alike, with an interest in thewinemaking process and its history.

We Greeks have a very high "re-al value" as a people, but unfortu-nately our "perceived value" is dis-proportionately low. Part of whatour wineries are trying to do,through the use of high-tech pre-

sentations and other innovations, isto increase the perceived value ofGreece in the eyes of our foreignvisitors. We want to show offGreece’s illustrious past, the pre-sent and our vision of the future, byshowing our guests that Greekshave always been capable of pro-ducing the very best. Our emphasison quality is now greater than everbefore, and we want the world toknow how good our wines are.That’s why, on our 125th anniver-sary, we changed the subtitle thatgoes under the "Boutari" logo from"Fifth Generation" to "Quality ofLife", which is a direct reference tothe contribution we want our com-pany and our wines to make to ourcustomers’ well being.

TNH: Mr. Boutari, you are aman that obviously seeks out op-portunities wherever they mayarise, and this has helped you suc-ceed in today’s highly competitivebusiness environment. Are youconsidering expanding your pro-duction base beyond Greece’s bor-ders?

Boutaris: Although we are stillnegotiating the final details, I cantell you that our company’s businessplan includes an expansion far be-yond Greece’s frontiers. I’m nottalking about neighboring countrieslike Cyprus or Bulgaria, since wehave already established a new win-ery in Cyprus together with P. Photi-ades, that is doing extremely well.What we’re planning to do is take onthe world’s major winemakers in thetraditional "heart" of the industry, bypurchasing a vineyard and winery inFrance. We want to show the worldthat a Greek company can go toFrance and make wine that is just asgood, if not better, than the produc-ts being offered by the most famousFrench winemakers. Of course, this

will be a challenging proposition forus, but it won’t be the first timewe’ve taken a good product andmade it better. Over the years wehave established ourselves inGreece’s premier winemaking re-gions (Naoussa, Mantineia, Nemea,Santorini, Crete, etc.), and have cre-ated wines that can rival the world’sbest.

TNH: Which Boutari wines havehad the greatest success inter-nationally?

Boutaris: As far as white winesare concerned, "MoschofileroBoutari" has become our standardbearer both on the domestic and in-ternational market. Traditionally,"Naoussa Boutari" has been ourmost popular red wine, as it has es-

tablished itself as an "all timeclassic". However, I’m confidentthat in coming years "Ode" and "Ili-da", two of our newest labels thatartfully blend local and internation-al varieties, will become extremelypopular in all of our export mar-kets.

TNH: Which new markets doyou believe offer the best potentialfor an expansion of your inter-national activities?

Boutaris: We’re paying close at-tention to Poland right now, wherewe have already established our-selves in recent years and theresults are very encouraging. Weare also looking in Russia, but thereare still a lot of issues such as socialsegregation and deep-rooted tradi-tions that need to be addressed be-fore it can develop a mainstreamwine culture. Scandinavia, Ger-many and England will continue tobe some of our best internationalcustomers, but we also expect an in-crease in sales in other Mediter-ranean countries such as Spain,Italy and even France.

2 THE NATIONAL HERALD, MARCH 5, 2005

The National HeraldPublisher-EditorAntonis H. DiamatarisAssistant to Publisher, AdvertisingVeta H. Diamataris PapadopoulosAdvertising Director (Athens)George KoutsoubelisManaging Editor of Special IssueDemetri ChrissProduction ManagerChrysoula KarametrosThe National Herald Inc. 41-17 Crescent St., Long Island City, New York 11101Tel: (718) 784-5255Fax: (718) 472-0510 e-mail: english.edition@thenationalherald.comDemocritou 1 and Academias Sts,Athens, 10671, GreeceTel: 011.30.210.3614.598Fax: 011.30.210.3643.776e-mail: herald@otenet.grSubscriptions by mail:1 year $59.85, 6 months $29.95, 3 months$19.95, 1 month $9.95Home delivery NY, NJ, CT:1 year $80.00, 6 months $43.99, 3 months$29.95, 1 month $12.95Home delivery New England States,Pennsylvania & Washington DC:1 year $99.00, 6 months $51.75, 3 months$37.45, 1 month $15.95On line subscription:Non subscribers: 1 year $29.95, 1 month $3.95;Subscribers: 1 year $19.95, 1 month $1.95

A Man with a Vision

Interview with Constantine S. Boutari,President of the Boutari Group

Constantine S. Boutari

Nicolas Tsakos has been in-volved in ship management since1981. Prior to that, he spent a totalof two years at sea gaining on-handexperience.

From 1982 to 1985, he was Ship-ping and Operation Manager ofTsakos Shipping & Trading Ltd inthe USA .

He received his BA Degree inEconomics and Political Sciencefrom Columbia University in 1985and his Masters Degree in ShippingTrade and Finance from the Lon-don City University Business Schoolin 1987.

He is the President and CEO ofTsakos Energy Navigation (TEN)

Limited, which is a publicly listedcompany both is the Oslo Bors(since1993) and in the New YorkStock Exchange(NYSE symbol:TNP) since March 2002. TEN ownsand operates a fleet of youngtankers that trade crude oil and oth-er oil products.

Currently, TEN’s fleet includes adiversity of modern environmentallyfriendly vessels covering a widespectrum of tankers such as LNG,VLCCs, Suezmaxes, Aframaxes,Panamaxes, and handysize tankers.

He has received various awardsmost notably "Best Maritime Man-ager of The New Generation"award by the magazine "Business

Administration Bulletin" at theAcademy of Athens .

Nicolas Tsakos is an active mem-ber of the following organizations:ñ Hellenic Marine Environment

ProtectionAssociation(HELMEPA), Chair-man

ñ Independent Tanker Owners Or-ganization (INTERTANKO)Council Member

ñ Union of Greek Shipownersñ Greek Shipping Co-operationCommitteeñ Greek Committee Of Det NorskeVeritasñ American Bureau of Shippingñ Bureau Veritas

Nicolas P. Tsakos: The Future of Greek Shipping

Greece will always be one of the world’s premiertourist destinations, since God and our ancestorshave done an excellent job in providing us with

an excellent climate, and a cultural heritageunmatched by any other nation in history...[ ]

THE NATIONAL HERALD, MARCH 5, 2005 3

4 THE NATIONAL HERALD, MARCH 5, 2005

Socrates Kokkalis is the founder,Chairman and majority shareholderof the INTRACOM Group of Com-panies. He was born in Athens andholds a degree in Physics and Elec-tronics. He is fluent in English, Ger-man and Russian, and also speaksRomanian, Italian, Bulgarian andfair amount of Serbian and French.

Mr. Kokkalis is also the majorityshareholder of "Olympiacos", one ofGreece’s most successful soccer teamsand sports clubs.

Socrates Kokkalis is an activesponsor of leading educational,cultural, athletic and business ini-tiatives in Southeastern Europe. In1997, he became a John Harvard Fel-low after establishing the KokkalisProgram at the Kennedy School ofGovernment, Harvard University.

The "National Herald" recentlyspoke with Mr. Kokkalis, and dis-cussed INTRACOM’s role inGreece’s development, as well as hisplans for the future:

TNH: Mr. Kokkalis, an inade-quate technological infrastructure isconsidered as one of the mainreasons for the lackluster perfor-mance of Greece’s public sector andgovernmental agencies. How is IN-TRACOM working to reverse thissituation, and what are the prospec-ts for the widespread implemen-tation of e-government solutions inGreece?

KOKKALIS: Greece has beenimproving its administration relatedinfrastructure for some time now,and we have been at the forefront ofthese efforts. E-government repre-sents an ideal stepping-stone for theimprovement of pubic services,transparency, time-efficiency, andthe rationalization of operations.INTRACOM’s e- government pro-jects that are currently in use includethe TAXIS system, which hashelped fight tax evasion and simplifyprocedures. Other projects such asthe Customs System, Social Se-curity, National Health System lo-gistics and Port Authority manage-ment have also been implemented.

The INTRACOM Group is alsovery active internationally in thisfield, as it participates in projects inmore than 50 countries, andprovides significant services to Eu-ropean Union institutions (and theEuropean Commission in partic-ular) via its subsidiary IN-TRASOFT INTERNATIONAL,

which is based in Brussels andLuxemburg. For example, we havecreated the CORDIS system that al-lows interested parties from aroundthe world to access the Commis-sion’s databases in search of EU-program-related information orpartners for projects. It also gives in-terested parties the opportunity tolook-up proposal submission proce-dures, and even to submit their com-pleted proposals.

TNH: The advances in Greece’stelecommunications sector havebeen spectacular in recent years,and INTRACOM has played a piv-otal role in this development.Should we expect to see a new gen-eration of telecommunication prod-ucts and services in the near future?

KOKKALIS: INTRACOM is al-ways searching for new and im-proved products in both the privateand corporate sectors. The R&Ddepartment is among the largestwithin our company. A companythat is active in high-end technologyhas to constantly search for newideas in order to remain on top. IN-TRACOM continues to consistentlyinvest more than 10% of itsrevenues in R&D, in order to meetthe specialized requirements ofbusiness enterprises and public-sec-tor organizations.

TNH: The development ofGreece’s military capabilities, aswell as the country’s participation ininternational defense industry con-sortia and R&D projects, has beenone of INTRACOM’s top prioritiesover the years. Do you think thatGreece’s defense industry has roomto grow in coming years?

KOKKALIS: INTRACOM’sparticipation in international de-fense-related consortia has been apriority and plays an important partin its corporate development. IN-TRACOM S.A. has been involvedin defense-related telecommuni-cations systems since 1992, and is alarge supplier to the HellenicArmed Forces. INTRACOM’s par-ticipation in national and inter-national defense programs createssignificant added value to Greece’seconomy. The company’s partici-pation in international programs(such as ESSM & IRIS-T missiles,Mid-Term modernization of theNATO AWACS aircraft and vari-ous research programs) further im-prove its standing in the industry,

while INTRACOM’s internationalpartnerships with leading manufac-turers such as Raytheon, Thales, Er-icsson, Zeiss Optronik, BGT,KMW, and Boeing allow us to par-ticipate in the design and produc-tion of cutting-edge technology.Through these partnerships we havegained the necessary know-how forthe development of technologicallyadvanced defense systems, and Iwould like to personally thank ourpartners for trusting us and cooper-ating with us so successfully.

TNH: Which of INTRACOM’scurrent activities do you believe of-fer the greatest potential for devel-opment in Greece?

KOKKALIS: INTRACOM S.A.is currently active in three importantsectors: Telecommunications In-frastructure, IT Products and Ser-vices, and Defense Electronics.There is an ever-increasing need forspecialization in certain products,and we plan to place a greater em-phasis on broadband related prod-ucts, as well as IT-services and out-sourcings. We have even studied theprospect of providing telecommuni-cation services.

TNH: Are you satisfied with theresults of INTRACOM’s purchaseof Conklin (a US telecommuni-cations company based in Atlanta,Georgia ) in 2000? What are yourplans for INTRACOM’s presencein the Americas in the future?

KOKKALIS: The US is a chal-lenging market and the experiencegained there has provided us with alot of technological and businessknow-how. Besides Conklin, ourGroup has entered the US marketwith INTRALOT, the third largestcompany in the world in gaming,transaction systems and lotterymanagement. We are currentlyproviding management services andtechnology for the Nebraska StateLottery, while we have enjoyedgreat success in South Americanmarkets such as Chile, Peru, andmost recently Colombia.

TNH: Mr. Kokkalis, you havetraditionally sought to forge closeties between business, culture andeducation, via the establishment ofthe Kokkalis Foundation and nu-merous other initiatives. What wasthe driving force behind your deci-sion to play such an active role in thefields of education and culture?

KOKKALIS: My late father, a

distinguished surgeon and universityprofessor, was my main source of in-spiration. He was a pioneer in thefield of medical science that made apoint of transmitting his appreci-ation for culture, innovation, andgroundbreaking initiatives to me.

Personally, I have always be-lieved that entrepreneurship offersus important lessons in respect, suc-cess, and self-confidence, and thatthe way to create successful en-trepreneurs is by offering them awide variety of educational andcultural opportunities. The KokkalisFoundation and the Kokkalis Pro-gram at Harvard’s Kennedy Schoolof Government offer educationaland training opportunities in thefields of culture, athletics, publicpolicy, medical research, and infor-mation technology, both in Greeceand abroad, and strive towards thecreation of a peaceful, democraticand prosperous Southeastern Eu-rope.

I consider the cooperation thathas been established with Harvard’sKennedy School as one of my mostsignificant achievements. TheKokkalis Program sponsors numer-ous initiatives including the organi-zation of public fora and inter-national conferences, the support ofresearch, the development of hu-man networks for the promotion ofinter-ethnic understanding and re-gional cooperation, the promotionof effective democratic governance,the enhancement of the informationsociety and the advancement ofknowledge with an emphasis onpublic policy.

TNH: You have undertaken nu-merous initiatives that seek to pro-mote mutual understanding andgood relations between Greece andTurkey. Do you believe that theprospects for establishing a multi-faceted entrepreneurial and culturalrelationship between the two neigh-bors are better than ever, especiallyin the light of Turkey’s forthcomingaccession negotiations with the Eu-ropean Union in October?

KOKKALIS: For Greece andTurkey, neighboring nations of suchproximity with many shared charac-teristics, the road of cooperation, onboth a national and entrepreneuriallevel, is bound to be mutually bene-ficial. Apart from the obvious bene-fits that come from a reduction inthe tension between our two coun-

tries, the promotion of a greatersense of security in the region allowsus to plan for the longer term.

Turkey is a large market withgreat potential, and we are very ea-ger to work more closely with ourneighbors in order to benefit fromtheir country’s (as yet) untappedresources. Turkey’s growth will beadvantageous for the entire region,and we want to participate in thisgrowth.

INTRACOM: Greece’s largest hi-tech company

INTRACOM was established bySocrates Kokkalis in 1977 and todayconstitutes the largest Greek hi-techconcern, boasting an extensive inter-national presence. INTRACOM’sengineers are constantly developinginnovative products, provide expertprofessional services, and undertakecomplex and large-scale integratedtechnology projects across the com-pany’s four basic sectors:* Telecommunications Access,

Transmission & Terminals/ Multi-service Networks Operations &Business Support

* e-Government & Public Administration

* Banking and Finance * Defense

Furthermore, INTRACOM de-signs, manufactures and deliversspecialized terminal devices andequipment, such as cash registers,lotto terminals, info-kiosks, energymeters etc. The company’s activitiesalso include:

* Research, development and pro-duction of hardware and softwareproducts

* Deployment and integration ofadvanced solutions and imple-mentation of large-scale "turn-key" projects

* Consulting, support, manage-ment, and outsourcing services

* Participation in international R &D programs

The company’s work force con-sists of approximately 3,500 em-ployees, 57% of which are univer-sity/college degree holders. Thecompany’s facilities are exceptional-ly large by Greece’s standards, wellin excess of 100,000 square meters.

INTRACOM exports its produc-ts and know-how to 50 countries,giving priority to the Balkans, theE.U., the countries of Eastern Eu-rope, the USA, the Middle East, N.Africa, the former USSR and S.E.Asia.

The company's customer base in-cludes large telecom organizations,public administration and e-govern-ment bodies, defense industries,banks, financial institutions, publicand private companies, etc.

The company is an active partici-pant in the technological recon-struction and infrastructure mod-ernization process underway inGreece, Southeast Europe, and theMediterranean basin, providing so-lutions, products and state-of-the-art know-how services through a se-ries of implemented projects.

INTRACOM closely cooper-ates, joins efforts and maintainsstrategic alliances with the largestcompanies in its field worldwide forthe purpose of research and devel-opment of new products and ser-vices. It is also one of the first Greekcompanies to have been included inthe international Social Responsi-bility indices (e.g. Storebrand), andis a member of the European andHellenic networks for CorporateSocial Responsibility (CSR).

In 2004, INTRACOM was hon-ored as one of the top 10 Greekcompanies (4th) and one of the top100 European companies with thebest work environment in the"BEST WORKPLACES 2004"competition, held by the "GreatPlace to Work Institute".

The majority of large-scalevalue-added projects, currently be-ing implemented by the company inGreece and abroad, aim at the im-provement of the infrastructure andthe modernization of large organi-zations.

Mr. Spyros Divanis, the ManagingDirector of the Divanis Chain ofHotels since 1987, was born in Athensin 1961. Upon graduating fromAthens University’s Law School in1985, he continued his studies at Lon-don’s Imperial College and subse-quently received a Master’s Degree inBusiness Administration from Lon-don University. More recently, in2004, he received his Doctorate in Sci-ence from Athens’ University Eco-nomics Faculty.

Since 2002, Mr. Divanis has heldthe post of Vice President of the PanHellenic Hoteliers Federation ofGreece, while previously having servedas its President for several years.Spyros Divanis, who is fluent in En-glish and French, is also the Vice Pres-ident of Greece’s Scientific Institute ofTourism Research and Forecasting.

"The National Herald" recentlyspoke with Mr. Divanis in Athens,and had a chance to discuss the de-velopment of the Divanis Hotels,and the future of Greece’s tourismafter the Olympics.

TNH: The Divani Caravel andthe Divani Apollon Palace aremembers of the "Leading Hotels ofthe World", a distinction that isshared with a very small number ofhotels and resorts in Greece. Justhow difficult is it for a hotel or spa tojoin this exclusive club?

Spyros Divanis: "Leading Hotelsof the World" is an organization thatassures the maintenance ofextremely high standards in thetourism industry, since all of itsmembers worldwide are five-starhotels. In order to be accepted inthis organization, a hotel must firstachieve and then continuouslymaintain a high level of service.Furthermore, it must offer its guestsworld-class facilities in every singleroom or suite. The verification pro-cess for all of the aforementionedcriteria is conducted by the organi-zation’s anonymous inspectors,which visit the hotel periodically.Any one of our guests could proveto be an inspector, and we alwayslearn about their visits to our hotelsafter the fact, following the submis-sion of their reports. However,getting good grades on the evalu-ations is not enough, since the orga-nization’s executive committee ulti-

mately decides which of the hotelswith "passing grades" are accepted,based on a number of additional cri-teria regarding the candidates over-all image and standing.

More recently, a new category,"The Leading Spas of the World",was added by the organization, in aneffort to distinguish the establish-ments that truly offer a complete"spa experience" from mediocrehotels that have simply re-chris-tened a weight room and a sauna asa "spa". The certification process forthe spas is perhaps even more strin-gent than the one used for thehotels, and is based upon a series of

ELOT qualitative criteria. I’mproud to say that as of last year, theDivani Apollon Palace’s Spa andThalassotherapy Center has be-come one of the 48 "Leading Spas ofthe World".

TNH: Speaking of spas, do youbelieve that Greece has what it takesto become an exclusive high-endtourism destination, especially whenone considers the massive invest-ments that have been made in re-cent years to create world-class facil-ities such as the Divani ApollonPalace and Spa?

Spyros Divanis: When you cre-ate a product that is directed at theluxury tourism target group, youneed to offer every conceivableamenity and comfort to cater to thedemands of this highly competitive

niche market. In recent years, manyhigh-end customers have begun toactively seek out the world’s bestspas and thalassotherapy centers.Greece has a distinct advantage overmany of its competitors in this field,due to its extensive coastline andspectacular beaches, and as such canoffer guests "the real thing", as op-posed to facilities in other countriesthat have to make do with an illusionof a beachfront environment.

Of course, we have to under-stand that Greece is a relativelysmall country with just over 10 mil-lion inhabitants, and surely one can’texpect it to sustain hundreds or

thousands of spas. What we can dohowever, is to make a concentratedeffort __ create several top level fa-cilities such as the Divani ApollonSpa and Thalassotherapy Center,that will in turn "get the word out"throughout the world, and bring in agreater number of high-end tourists.The same thing happened in theCote d Azure several years ago,which made a name for itself as "the"top vacation destination after nu-merous internationally recognizableimage makers became regularsthere.

TNH: What more needs to bedone in order to advance the overalldevelopment of Greek tourism?

Spyros Divanis: Due in part tothe massive investments that wentinto our preparations for theOlympics, there are quite a few ex-cellent hotels and resorts in Greecetoday. However, the value of allthese individual efforts oftentimesgets lost in the less-than-satisfactoryimage of our country as a whole. Ithink that the basic problem we havein Greece is the lax attitude manypeople have towards to the rule oflaw, and especially in the service in-

dustry it is not uncommon to en-counter a lack of discipline at everylevel.

I think that the time is long over-due for all our service providers, andespecially those that are involvedwith the tourism industry, to under-stand that times have changed. Wemust adapt to these new condiitonsin order to remain competitive.We’ve proven to ourselves that wecan do it for 20 days during theOlympics, and now this new way ofthinking must find its way into everyaspect of our lives.

TNH: What do you thinkGreece’s advantages are, versus theother countries of our region thatare competing for our business?

Spyros Divanis: I think that ourclimate here is one of the best in theworld, year round. Also, the overallsafety level in Greece, even with re-gard to petty crimes, is much higherthan almost any other European orMiddle Eastern country.

TNH: Then why have other com-parable tourism destinations, likeCroatia and Spain, increased theirtourism much more rapidly thanGreece has in recent years?

Spyros Divanis: I think that wedo a lot of things really well inGreece, and that the basic problemuntil recently has been our inabilityto show the world what we are capa-ble of. Up until the 2004 Olympics,our image abroad wasn’t all thatgreat, and I think that was due to thefact that our packaging, the way wemarket Greece abroad, leaves a lotto be desired. I think that our imageproblem spans the entire range ofour international activities, from ourforeign policy to our vacation desti-nation advertising. I have personallyspoken to many guests that ex-pressed their amazement upon ar-riving in Athens, as what they hadheard prior to their arrival had themfearing the worst. Of course we haveour problems here, but they are noworse than Madrid’s or Milan’s,cities that very rarely get criticizedbecause they have an effective pub-lic relations mechanism backingthem up.

TNH: Are you satisfied with thegovernment’s recent efforts to cre-ate a new series of advertisementsand promotional campaigns forGreek tourism?

Spyros Divanis: Surely this yearthings are getting done in a muchmore organized fashion than before,

and we expect to see some positiveresults. However, there is still a longway to go before we can say thatGreece is being successfully mar-keted abroad. I think that the con-solidation effort that is currently un-derway, where all the funding forGreece’s tourism promotion will behandled by the Tourism Ministry(rather than local government andchambers of commerce as is curren-tly the case) is definitely a step in theright direction.

TNH: Do you think the 2004Olympics will result in a muchgreater influx of tourists to Greecein coming years?

Spyros Divanis: I think that itcan, but it will require a great deal ofplanning and follow-up on our partif we hope to capitalize on the posi-tive image of Greece that theOlympics created throughout theworld. We need to continually re-mind our potential guests thatGreece is an E.U. member state thatknows how to operate effectively;that it possesses a world-class infras-tructure; and that it can offer itsguests top-notch facilities and ser-vices.

The Divanis Chain of HotelsThe Divanis Chain of Hotels in

one of Greece’s largest tourism con-cerns, with almost half a century ofexperience and uninterruptedgrowth. The company currentlyowns and operates six properties:Divani Apollon Palace & Spa

The Divani Apollon Palace &Spa is situated on a spectacularbeachfront setting in Vouliagmeni,making it the ideal choice for busi-ness or pleasure, or both! Just 19kilometers from Eleftherios Venize-los International Airport and 18kilometers from the center ofAthens, the Divani Apollon Palace& Spa is the ideal base from whichto explore Greece’s capital. The Divani Caravel

The Divani Caravel is a five-stardeluxe hotel ideally situated in theheart of Athens, just minutes awayfrom the city’s financial and businesscenter, and fashionable Kolonakiwith its world-class shopping, trendycafes, eateries and internationallyacclaimed museums. The DivaniCaravel became a member of theelite "Leading Hotels of the World"in July 2004, as a result of itsextremely high level of facilities andservices.

It offers 427 rooms, 42 suites, and

2 Presidential Suites as well as bothan indoor and outdoor pool, a fit-ness club that includes a steam bathand sauna, a fully equipped gym anda variety of dining options.The Divani Palace Acropolis

The Divani Palace Acropolis issituated at the foothills of theAcropolis, a short walk from one ofcivilizations most significant monu-ments, the Parthenon, the historicPlaka District, and the center ofAthens.

The Divani Palace Acropolis hastwo elegantly furnished lobbies,both of which lead to the garden andthe swimming pool, while visitors al-so enjoy privileged access to the an-cient ruins of Themistocles Wall.Subsequent to their being un-earthed on the hotel’s premises, thefoundations of the Wall have beenpreserved and tastefully incorpo-rated in the Divani Palace Acropo-lis’ architectural design.The Divani Corfu Palace

The Divani Corfu Palace, a com-fortable four-star hotel with all thefacilities of a deluxe hotel, is locatedin the cosmopolitan Ionian island ofCorfu (Kerkira). Ideally situated onthe wooded hillside of Kanoni, theDivani Corfu Palace overlooks thelagoon and is only 3 kilometers fromthe town center and 1.5 kilometersfrom Mon Repos beach. The hotel’sunique location allows guests to en-joy drinks or a light snack at thepoolside restaurant, while watchingthe majestic sunset over the lagoon.Divani Palace Larissa

The Divani Palace Larissa is ide-ally situated in the heart of Larissa’sshopping district, just 18 kilometersfrom the exquisite beauty of theTempi Valley, 80 kilometers fromMeteora, and 75 kilometers frompicturesque Pelion. The DivaniPalace Larissa offers 77 rooms,which include 2 suites, as well asnon-smoking rooms.Divani Meteora

Located at the foothills of one ofnature’s most spectacular creations,the Meteora, where Byzantinemonks created Christianity’s mostawe-inspiring monastic retreats asearly as the 11th Century, the DivaniMeteora offers guests 165 well-ap-pointed rooms, all equipped withair-conditioning, satellite TV, auto-matic dial phone, mini-bar, hairdryer and a balcony with breathtak-ing views of Meteora and its historicmonasteries.

Spyros Divanis: Leading Hotelier

Socrates Kokkalis: The Undisputed Hi-tech Leader

Socrates Kokkalis

Spyros Divanis: We’ve proven to ourselvesthat we can do it for 20days during theOlympics, and now thisnew way of thinking mustfind its way into everyaspect of our lives...

THE NATIONAL HERALD, MARCH 5, 2005 5

The Piraeus Bank Group is oneof the most dynamic financial orga-nizations in Greece today. Foundedin 1916, Piraeus Bank went througha period of state-ownership andmanagement (1975-1991) beforebeing privatized in December 1991.At the time, Piraeus Bank was a verysmall and loss-making institution,representing a mere 0,2% ofGreece’s market share, with 10branches and 200 employees.

The turnaround engineered byMr. Sallas can be viewed as nothingless than spectacular, as PiraeusBank is now the fourth largest bankin Greece and number 102 in Eu-rope. Today, with nearly 11% ofGreece’s banking market, 310branches and over 5,000 employees,the Piraeus Bank Group is fiftytimes larger than it was 13 years agoin terms of market share, and 150times larger in terms of assets. Mr.Sallas is held almost exclusively re-sponsible for this "banking miracle"of Southeast Europe.

As part of its corporate growthstrategy, the Piraeus Bank Groupmade a series of strategic movestowards establishing a strong pres-ence in Greece’s rapidly developingbanking market. In 1998, under Mr.Sallas’ guidance, the Piraeus BankGroup absorbed Chase ManhattanBank in Greece, assumed a control-ling interest in Macedonia-ThraceBank and acquired Credit LyonnaisHellas. At the beginning of 1999, theGroup also acquired Xiosbank andabsorbed the activities of NationalWestminster Bank Plc in Greece. InJune 2000, Piraeus Bank acquiredPater Bank of Romania, and unifiedits three commercial banks inGreece (Piraeus Bank, Macedonia-Thrace Bank and Xiosbank) underthe Piraeus Bank logo. The mergerof the three banks proved a greatsuccess, and created one of the threelargest private sector banks inGreece.

In early 2002, the Piraeus BankGroup decided to acquire the Hel-lenic Industrial Development Bank(ETBAbank), in order to enhancethe Group's capital base and in-crease its market share in bankingactivities, leasing and asset manage-ment. ETBAbank was successfullyabsorbed by Piraeus Bank in De-cember 2003. Also, at the beginningof 2002, a strategic alliance agree-ment for the Greek market wassigned between Piraeus BankGroup and the international bank-ing and insurance ING Group. Aspart of the implementation of thisagreement two joint ventures havebeen established in the fields of"banc assurance" - employee bene-fits and asset management, alongwith cross shareholding.

Today, the Piraeus Bank Groupincludes companies covering all as-pects of finance and banking inGreece. Piraeus Bank possessesextensive know-how in the areas ofretail banking, small and medium-sized enterprises (SMEs), capitalmarkets and investment banking, aswell as leasing and financing of the

shipping sector. These services areoffered through the Bank's branchnetwork and as well as through the"Winbank" electronic bankingnetwork. The latter was launched atthe beginning of 2000 as the firstcomplete electronic banking servicein Greece, offering a full set of ser-vices through four different chan-nels (internet, mobile phone, callcenter and ATM).

The excellent level of serviceprovided by Winbank has been ac-knowledged by numerous organi-zations in Greece and abroad,attracting a number of awards anddistinctions. Furthermore, Winbankhas been granted the ISO 9001:2000certification, making it the only e-banking service with ISO certifi-cation in Greece.

Piraeus Bank Group has a grow-ing international presence, mainlyfocused in Southeastern Europe,but also in the financial centers ofLondon and New York. In partic-ular, the Group is present in theUSA through Marathon Bank,which is based in New York. Afterthe absorption in January 2004 ofInterbank NY, the Piraeus groupnow has a total branch network of 10units in the USA. There is also a Pi-raeus presence in England via itsbranch in London; in Albania (viaTirana Bank with 20 branches); inRomania (via Piraeus Bank Roma-nia with 10 branches) and in Bulgar-ia (via 13 branches of Piraeus Bank).

According to Mr. Sallas, the pri-mary strategic targets of the PiraeusBank Group are as follows: enhanc-ing market share in Greece and theBalkans, improving service qualityand customer satisfaction, creatinginnovative products, further en-hancing the Group's position inretail banking and small and medi-um-sized enterprises financing,strengthening the Group in the ar-eas of asset management and "bancassurance" and, finally, strengthen-ing profitability with a view towardsconstantly increasing shareholdervalue.

Mr. Sallas’ fundamental policyregarding human resources devel-opment is based on the efficientmanagement of human resources,leading to the creation of skillful anddedicated personnel able to func-tion within the framework of thecompetitive EU banking market. Atthe end of September 2004, the Pi-raeus Group employed a total of5,182 people.

At the end of September 2004,the Piraeus Group had a network of287 branches and its equity capitalamounted to EUR 1,171 million.The clients' deposits, repos andretail bonds issued amounted toEUR 11,365 million, loans reachedEUR 12,084 million and total assetswere EUR 15,548 million.

In 2003, "The Banker" magazinenamed Piraeus Bank Greece’s"Bank of the Year". About 32% ofthe Bank’s shareholders (whichnumber more than 200,000) are fi-nancial institutions and mutualfunds from throughout Europe and

the USA.PIRAEUS BANK

Piraeus Bank, the parent compa-ny of the Piraeus Bank Group, wasfounded in 1916 and is a commercialbank specialized in retail banking,SMEs and capital markets. In June2000, the Bank absorbed Xiosbankand Macedonia-Thrace Bank, whilein December 2003 also absorbedETBAbank, thus creating one of thelargest private banks in Greece. Atthe end of March 2004, its assetswere EUR 14,199 million and thepre-tax profit of the period wasEUR 41.61 million. The estimatedmarket share for 31.03.2004 amongcommercial banks operating inGreece was 10.4% in terms of loans,8.6% in terms of deposits and 8.2%in terms of assets. At the end ofMarch 2004, the branch network in-cluded 237 units (228 in Greece, 1 inLondon and 8 in Bulgaria) and theBank had 4,026 employees. PiraeusBank has been listed on the AthensStock Exchange (ATHEX) since1918.

THE PIRAEUS GROUP SUBSIDIARIES

MARATHON NATIONAL BANKOF NEW YORK

Established in 1989, MarathonBank is an American financial in-stitution, licensed as a NationalBank and It is registered in NewYork. In January 2004, MarathonBank absorbed Interbank NY, thushaving a total branch network of 10units (in Astoria, Bayside andBayridge, Ditmars and Chelsea,Manhattan, Whitestone and Brook-lyn). At the end of December 2003,its assets reached EUR 275 million(EUR 510 million including ex-In-terbank’s assets) and the pre-taxprofit was EUR 6.45 million. MARATHON NATIONALBANK OF NEW YORK Astoria, New York28-22 Steinway Street, 11103Tel.: (718) 721-0200Fax: (718) 721-0270www.mnbny.com

TIRANA BANK IBCTirana Bank opened in Septem-

ber 1996 with a registered office inTirana. It was the first privatelyowned banking institution in Alba-nia and has the license of a universalbank. The bank’s network on De-cember 31st 2003 consisted of 15branches, with 5 branches in Tirana,in 7 other Albanian cities (Fieri,Durres, Gjirokastra, Korsa, Vlore,Elbasan and Skodra) and in 3custom offices. At the end of De-cember 2003, its assets reachedEUR 196 million and the pre-taxprofit was EUR 2.83 million. PIRAEUS BANK ROMANIA SA

Piraeus Bank Romania was es-tablished in 1995 under the Roma-nian law and is licensed to conductcommercial banking activities inRomania. The Bank was incorpo-rated into the Piraeus Bank Groupin mid-2000 and on December 31st2003 had 6 branches, 3 in Bucharest,1 in Timisoara, 1 in Tirgu Mures and

1 in Ploiesti. At the end of Decem-ber 2003, its assets amounted toEUR 176 million, while pre-taxprofit was EUR 2.17 million.

PIRAEUS LEASING SAPiraeus Leasing was founded in

1993 and it has been listed in theATHEX since 28/12/1995. It isranked among the largest firms in itssector with an estimated marketshare of 18.1% (year-end 2002data). The company emphasizes itsoperations in car, real estate andmachinery leasing. Robust expan-sion of its assets, further reinforce-ment of the position in the marketand streamlining of the organi-zational structure characterize thedevelopment course of PiraeusLeasing in the last years. This en-largement is based both on organicgrowth and acquisitions (OTE Leas-ing and ETBA Leasing). At the endof December 2003, its assets stoodat EUR 662 million and the pre-taxprofit was EUR 12.75 million.

PIRAEUS MULTIFIN SA The company was founded in

1998. Its objective is business con-sulting of trade companies regard-ing their capital structure and the fi-nancing of the purchase of cars,yachts and machinery. The companyalready co-operates with a largenumber of car-dealers. At the end ofDecember 2003, its assets reachedEUR 455 million and the pre-taxprofit for the period was EUR 10.74million.

PIRAEUS FACTORING SAThe company was founded in

1998 and offers factoring services(discounting of invoices, admin-istration-collection of claims) tocontractors and consumer factoringto retail shops. It is a member of theinternational organization FactorChain International and co-oper-ates with the major factoring organi-zations abroad. At the end of De-cember 2003, its assets were EUR152 million and the pre-tax profit forthe period was EUR 0.47 million.

MULTICOLLECTION SAThe company was founded in

1998, aiming at the collection ofclaims on behalf of banking in-stitutions, in the area of consumercredit. The income of the companystems from the fees charged on paidamounts. At the end of December2003, total assets were EUR 2.6 mil-lion and the pre-tax profit was EUR0.89 million.

SIGMA SECURITIES SAAt the end of December 2003,

Sigma Securities was ranked amongthe first brokerage houses in Greece(after the deduction of block sharesagreements), having a 6.8% marketshare. The company has beenawarded significant distinctionsfrom international organizations. Atthe end of December 2003, its assetswere EUR 133 million and the pre-tax profit of the period was EUR3.51 million.

PIRAEUS FINANCE SAThe company offers financial,

consulting and liquidation services.At the end of December 2003, its as-sets were EUR 15.4 million and thepre-tax profit for the period wasEUR 0.50 million.

PIRAEUS EQUITY HOLDINGS SA

The company (formerly PiraeusVenture Capital), which was found-ed in 1999, pursues venture capitalinvestments to start-ups or expand-

ing enterprises, with profitable per-spectives in the medium term. Atthe end of December 2003, its assetswere EUR 10.5 million and the lossfor the period was EUR 0.20 mil-lion.

HELLENIC INVESTMENTCOMPANY SA

The Hellenic Investment Com-pany is the largest Greek closed-endfund company and it has been listedon the ATHEX since 19/01/1973.Hellenic Investment Company ab-sorbed Piraeus Investment in Oc-tober 2003. At the end of December2003, its assets reached EUR 398million and the pre-tax profit for theperiod was EUR 21.94 million.

ING-PIRAEUS ASSET MANAGEMENT SA

The company is a joint venture ofPiraeus Bank and ING Group(49.9% and 50.1% stakes respec-tively) in the field of asset manage-ment and has undertaken the man-agement of the mutual funds of thecompanies ING Piraeus MutualFunds Management Company SAand Piraeus Asset Management Eu-rope SA, which currently have 10and 2 M/F, providing a full range ofinvestment choices. At the end ofDecember 2003, the total funds un-der management of these two com-panies were EUR 768 million.

PIRAEUS MUTUAL FUNDSMANAGEMENT SA

Piraeus Mutual Funds Manage-ment currently manages 2 moneymarket mutual funds, while the oth-er types of mutual funds (bonds, eq-uities and balanced) offered by Pi-raeus Bank have been transferred toING Piraeus Mutual Funds Man-agement SA. At the end of Decem-ber 2003, the total funds under man-agement were EUR 582 million,while the loss for the period amoun-ted to EUR 0.76 million (mainly dueto an extraordinary tax lien).

ING-PIRAEUS LIFE INSURANCE COMPANY SAING Piraeus Life SA (formerly

Piraeus Life) is a joint venture of Pi-raeus Bank and ING Group (49.9%and 50.1% stakes respectively) inthe field of "banc assurance". Thecompany offers the whole range ofLife, Health and Investment Insur-ance, as well as employee benefitsprograms. The structured productsand the low distribution cost are themain characteristics of the company,thus allowing the implementation ofa very competitive pricing.

PIRAEUS INSURANCE AGENCY SA

The company operates as a bro-ker for all types of insurance poli-cies, having as a priority to fullymeet the insurance requirements ofPiraeus Group’s customers. In thefirst half of 2004, the absorption ofETBA Insurance Agency by PiraeusInsurance Agency will be com-pleted. At the end of 2003, the com-pany’s assets were EUR 4.5 millionand pre-tax loss for the period wasEUR 0.79 million.

e-VISION SAe-VISION, implementing the

strategy of the Group, aims to estab-lish a strong presence in the areas ofinformation technology, telecom-munications and relevant services.The company focuses its activitieson the exploitation of synergies inareas which are complementary tothe core business of the Group. Atthe end of 2002, total assets were

EUR 30 million and the pre-taxprofit was EUR 0.62 million (on aconsolidated basis).

PIRAEUS DIRECT SERVICES SA

Piraeus Direct Services (formerE-phonia), founded in November2000, has undertaken the manage-ment of Piraeus Bank’s credit cards.Moreover, it provides call-centerservices to the Bank, to the compa-nies of Piraeus Group and generallyto large enterprises, groups of com-panies and organizations with con-siderable needs of communicationthrough telephone, fax and the In-ternet. At the end of 2003, total as-sets were EUR 2.2 million and thepre-tax profit was EUR 118thousand.

ABC PROFESSIONAL SERVICES SA

ABC Professional Services hasbeen operating for more than twodecades in the software develop-ment and integrated IT solutionssectors. In 2003, the Card Process-ing Center project (covering fullmanagement for debit and creditcards) was completed, offering itsservices to the Bank. At the end of2003, total assets were EUR 7.3 mil-lion and the pre-tax profit was EUR20 thousand.

EXODUS SAExodus is currently one of the

largest e-business solution providersin Greece. It offers advanced so-lutions and services in electroniccommerce, application contentmanagement for business to busi-ness and business to consumer pro-cesses, workflow and knowledgemanagement support, data ware-houses and Decision SupportSystems (DSS), new media ex-ploitation over the Internet, in-tranet, extranet as well as e-learningapplications. The company has im-plemented information systems ofhigh added value for banks, insur-ance organisations, large publishingfirms and organisations of the publicsector. At the end of 2003, its assetswere EUR 13.2 million and pre-taxprofit was EUR 0.40 million.

INTERATTICA SA The courier company INTER-

ATTICA has implemented anextensive program of developmentand re-organization aimed at ex-panding its presence throughoutGreece and establishing the compa-ny as a leading courier company inGreece. At the end of 2003, its assetswere EUR 4.3 million and pre-taxloss was EUR 0.45 million.

PICAR SA Following a relevant tender, the

company was awarded the commer-cial operation and management ofthe Army Pension Fund Buildingbased on a long contract expiring in2049. The Building covers the entireblock delimited by Stadiou-Vouk-ourestiou-Panepistimiou-Amerikisavenues –a total area of 57,000 m2-and is intended to operate as thefirst modern complex in the Athenscity center of high technical, func-tional and aesthetics standards atthe end of 2004.

ETBA INDUSTRIALESTATES SA

The main scope of ∂∆µ∞ In-dustrial Estates SA, established in2003 after detachment from theBank, includes the institution, orga-nization, operation and manage-ment of Industrial Areas, search forfinancing sources and securing offunds for the development and im-provement of the necessary infras-tructure.

PIRAEUS REAL ESTATE SA Following the decision to trans-

form and turn it into the Group'smost significant company in the realestate sector, in 2003 the listed com-pany detached its electrical section(undertaken by its subsidiary Elec-tra Northern Greece). Further-more, it restructured its organi-zation, in order to provide compre-hensive Real Estate services, devel-op its own real estate and finallymanage its shareholdings, mainly inPiraeus Real Estate InvestmentProperty SA. At the end of 2003, itsassets were EUR 63.6 million andpre-tax profit was EUR 2.16 million.

PIRAEUS REAL ESTATE INVESTMENT PROPERTY SA

The company is the first officialundertaking for collective invest-ments in fixed assets in Greece. Itsassets at year-end 2003 were EUR48.1 million and pre-tax profit wasEUR 7.11 million.

PIRAEUS BOTFIN SAPiraeus Botifin SA is involved

in evaluating and organizing the fi-nancing of development projects.The company owns a prime pieceof real estate covering an area of8,800 m2 on Kifissias Avenue,Maroussi, close to the AtticaHighway intersection. In 2003, itwas decided to develop this lot in-to an amusement and commercialcenter (cinema multiplex, restau-rants, bars and amusement facili-ties) with an underground parkinglot for 500 cars, which is expectedto be operational by year’s-end2004.

6 THE NATIONAL HERALD, MARCH 5, 2005

Michalis Sallas, the President and CEO of the Piraeus BankGroup, was born 55 years ago in Heraklion, Crete. The son of a suc-cessful merchant, Sallas studied Economics at Athens Universityand Germany’s prestigious Heidelberg University, where he laterwent on to teach as an assistant Professor. Mr. Sallas has alsotaught Economics at Athens’ Panteion University.

Prior to assuming his current position as head of the PiraeusBank Group, Michalis Sallas served as General Secretary of theMinistry of Trade; director of Greece’s Industrial DevelopmentBank (ETBA); and head of Greece’s Capital Trade Commission.Although he has since devoted himself almost exclusively to theworld of finance, Mr. Sallas has shown an aptitude for politics andthe legislative branch of government, by submitting numerousdraft proposals regarding banking and finance to parliament.While still in college, Michalis Sallas participated in Greece’s cen-trist movement "Enosi Kentrou", and was jailed in 1968 by Greece’sjunta for taking part in demonstrations demanding the re-estab-lishment of democratic rule.

Ulysses Alexander Kyriacopou-los was born in New York in 1952.He is married to Nicole and has 3children.

He studied Mining Engineeringat Montanuniversitaet Leoben inAustria, and at the University ofNewcastle-upon-Tyne in England.He received his MBA at INSEAD(the European Institute of BusinessAdministration) in Fontainebleau,France. He then worked in projectfinance and investment banking forAmerican Express InternationalBanking Corp. in New York,Houston and London for two yearsuntil his return to Greece to com-plete his military obligation in theGreek Navy. Apart from Greek Mr.Kyriacopoulos speaks English,French and German.

In September 1979 he joined thefamily business, and his first assign-ment was that of Finance directorfor the mining group of companies.He then spent three years managingbusiness units in the group’s tradingbusiness, distributing products pro-duced by Yamaha Motor company(Japan), Case (USA), Linde (Ger-many) and Avtoexport (USSR) inthe Greek market. Having alsospent a year in Bauxite and Ben-tonite sales, in 1986 he became man-aging director of "Bauxite Parnasse",the largest company of the group atthe time.

In 1990 he was named CEO ofthe entire Mines and MineralsGroup. He was instrumental insetting the fourth generation of thefamily business on a steady develop-mental course, by organizing it pro-fessionally; taking it public in 1984

and arranging the exit of severalfamily members; and raising thenecessary capital for the company’sinternational expansion. Starting asan exclusively Greek operation, to-day the company has mines, pro-cessing plants and warehouses in 22countries, while only 1/3 of the peo-ple on the payroll are presently inGreece. In 2000, he was electedChairman of the board and ap-pointed shortly thereafter as CEOof the group of companies.

Since the early eighties, Mr. Kyri-acopoulos has been actively in-volved in the Association of Miningcompanies of Greece, and activelyparticipates in Eurometaux and Eu-romines, which represent the metalsand mining sectors interest at Euro-pean level in Brussels. He joined theboard of the federation of Greek in-dustries for the first time in 1988,and his responsibility at the time wasto coordinate SEV’s internationalaffairs and to assure that Greek in-dustry positions were represented inthe different working groups inUNICE and the EU.

Mr. Kyriacopoulos rejoined theboard of SEV in 1999, and in 2000he was elected as its Chairman. In2002 and 2004, he served as Chair-man and President of the Feder-ation. He has accumulated extensiveexperience in collective bargaining,having negotiated with trade unions,concluded and signed severalnational agreements. He also suc-ceeded in arranging for the Greekgovernment to declare 2005 as the"Year of Competitiveness."

Ulysses Kyriacopoulos is one ofthe founders of ALBA (the Athens

Laboratory of Business Admin-istration), and has repeatedly servedon its board (and twice as its Chair-man). Mr. Kyriacopoulos and hismother jointly endowed the firstAcademic Chair at ALBA, the"Kitty Kyriacopoulos Chair in Fi-nance". More than 1000 MBA’shave graduated to date from ALBA,which is by now considered by farthe best business school in the coun-try and one of the best in the region.

Ulysses Kyriacopoulos hasserved and still serves on severalboards, including the Bank ofGreece, Delta Holding SA, Air Liq-uide Hellas SA. and Boutaris Hold-ing SA. He is also on the advisoryboards of INSEAD, Athens Col-lege, Eikon Venture Capital.

Ulysses Alexander Kyriacopoulos

Ulysses Alexander Kyriacopoulos

M. Sallas and The Piraeus Bank Group

THE NATIONAL HERALD, MARCH 5, 2005 7

Pericles Panagopulos was born inAthens and studied Business andEconomics in Greece, Switzerlandand the U.K.

He began his career in shippingat an early age. He worked in cargo,reefer shipping and the cruise busi-ness until his mid 30's, when he setup his own cruise company underthe name Royal Cruise Line. Afteralmost two decades of success in thecruise line industry, PericlesPanagopulos sold the company toNorwegian interests and got in-volved in cargo shipping. In the mid1990's, Mr. Panagopulos once againbecame involved in passenger ship-ping, via the newly formed SuperfastFerries that became an overnightsuccess on the Greece-Italy route.

Pericles Panagopulos is the headof the Attica Group, the AthensStock Exchange listed parent com-pany of Superfast Ferries and theBlue Star Group. He is also Presi-dent of the Association of GreekPassenger Shipping Companies.

Mr. Panagopulos is married toKaterina, who is Greece’s Am-bassador to the Council of Europefor Sport, Tolerance and Fairplay.Together they have a daughter,Irene, and a son, Alexander, who isPresident and Managing Director ofSuperfast Ferries.

Pericles Panagopulos’ Vision for the Attica Group

Mr. Panagopulos is justifiablyproud of the Attica Group’s currentstatus as one of Europe’s most dy-namic shipping concerns. In a recentaddress to the Group’s sharehold-ers, Mr. Panagopulos summarizedthe previous decade’s accomplish-ments and outlined his strategic ob-jectives for the future: "Over tenyears ago our Group ordered thefirst two Superfast vessels, SuperfastI and Superfast II, at Schichau See-beckwerft A.G. shipyard in Bremer-haven, Germany. Subsequent totheir delivery in 1995, they were as-signed to the route between Greeceand Italy, impressing everyone with

their advanced technology andspeed, which was unique at the time.Since then, the Group's subsidiarieshave built twelve new Superfast andfive new Blue Star ferries in total.

Four of our new Superfast shipsand one ship of the Blue Star Fer-ries, connect the ports of Patras andIgoumenitsa with the Italian ports ofBari and Ancona, while four moreSuperfast vessels connect Germanywith Finland, and Scotland with Bel-gium. Meanwhile, the five newly

built Blue Star ferries have been as-signed to the Greek Islands routes(three in the Cycladic Islands andtwo to Rhodes and Crete).

The performance of our fleet inthe Adriatic Sea is rather wellknown. For the sixth consecutiveyear, our ships ranked first in thetransfer of passengers, cars andfreight between Greece and Italy.Our Blue Star ferries, which are en-gaged in Greek domestic services,continue to break occupancyrecords and have significantly im-proved their financial results.

Our efforts aim to give full satis-faction to our customers of allnationalities. In order to succeed insuch an effort, it is necessary tomaintain the optimum quality of ourshipping assets and the quality of theservices offered on board our vesselsas well as by our offices and agencieson land. Thus, we attach great im-portance to the upkeep of the fleetand we closely monitor the trends inthe trade.

Within the Group's prospectsand goals, apart from maintainingthe modernity of our fleet and thequality of the services offered, is thecreation of new markets and desti-nations. We are carefully monitor-ing the range of new opportunities

that have recently been presented tous, especially within the Mediter-ranean basin and in a pan-Europeanscale, due to the recent enlargementof the European Union."

Alexander P. Panagopulos: The next generation of excellence

Alexander Panagopulos wasborn and raised in Athens, Greece.He went on to study Business Ad-ministration in California, U.S.A. atthe University of Menlo.

From an early age Alexander

Panagopulos played an active role inpassenger shipping. From 1986 to1988 he was involved in the design,and later supervised the construc-tion of the M.S. Crown Odyssey, a1,200-passenger cruise ship. TheCrown Odyssey was delivered in1988 to the then family-owned Roy-al Cruise Line which had beenfounded by his father in 1972.

Since 1993, Alexander Panagop-ulos is the President and ManagingDirector of Superfast Ferries S.A.,the worldwide ship managers for theAttica Group. He is also Vice Chair-man and Chief Executive Officer ofthe Attica Group, and Director ofits subsidiary Blue Star MaritimeS.A., both of which are listed on theAthens Stock Exchange. In additionto the above, Alexander Panagopu-los is also Vice President of MagnaMarine Inc., a member of thePanagopulos Group of Companiesthat manages a fleet of modern bulkcarriers. He is also Chairman of theHigh Level Ferry Group of ECSA(European Community Shipown-ers' Associations) and an activemember of the Greek PassengerShip Owners Union, where he heldthe position of Secretary Generalfrom 1997 to 2003. AlexanderPanagopulos is a member of the

Board of the International MarineTransit Association (IMTA-Inter-ferry); the American Bureau ofShipping (ABS); Lloyd's RegisterHellenic National Committee; theFederation of Greek Industries; theGreek Entrepreneurs Association;and the Yacht Club of Greece. Mr.Panagopulos is also a member of theBoard of the Association of GreekTourist Enterprises (SETE).

With regard to his guiding princi-ples and vision for Superfast Ferries,Mr. Panagopulos recently statedthat: "Since 1995 we have been in-troducing a new philosophy to ferrytravel, building sea bridges and seahighways across Europe. Our com-mitment to quality, coupled with ourobsessive attention to detail and thecareful selection of our staff, is dedi-cated to making each moment ofour guests’ stay on board exception-al. We are committed to offering amemorable Superfast Experience toour customers every time they travelwith us."

SUPERFAST FERRIES: The one to catch

Today, Superfast Ferries is theNo.1 ferry company on the Italy-Greece routes.

Superfast Ferries currently oper-ates four brand new ultramoderncar passenger ferries offering dailyconnections between the Greekports of Patras and Igoumenitsa andthe Italian ports of Ancona andBari. When it first entered the mar-ket in 1995, Superfast Ferries revo-lutionised ferry crossing in the Adri-atic Sea by cutting travelling timebetween Patras and Ancona by40%, or in other words from twonights at sea to a fast overnightcrossing. In 1995, with four ferries,Superfast held a 25% market sharein a market of up to 45 ferries.

In the Baltic Sea, Superfast Fer-ries offers daily connections be-tween the ports of Rostock, Ger-many and Hanko, Finland, in acrossing time of 21 hours. SuperfastFerries entered the Baltic Sea mar-

ket in 2001, offering the fastest con-nection between Germany and Fin-land in 21 hours. Today, SuperfastFerries ranks first in the trans-portation of passengers and accom-panied freight units between Ger-many and Finland.

In January, 2004, Superfast IXand Superfast X, which operate onthe Scotland - Belgium route, werevoted as "Best ferry overall" and"Best in the categories of cabins,bars and lounges" by "HolidayWhich?" magazine, the publicationof the British Consumers' Associ-ation, the largest consumer associ-ation in Europe with over 700,000members. In November, 2004,Superfast Ferries was voted "BestFerry Operator" by the ScottishPassenger Agents' Association. TheSPAA is the oldest travel trade asso-ciation in the world and was estab-lished in 1921 with approximately700 associated travel agents in Scot-land voting for the award.

The Superfast concept is one ofspeed, high quality services in avalue-for-money product: on board,the Superfast vessels offer a uniquecombination of comfort, luxury andstyle. Bars and restaurants, self-ser-vice buffet and a la carte diningmake every voyage a true gourmet'sdelight. Public facilities include acasino, a children's playland, disco, avideo games room, a Havana Clublounge, a card room, as well as shopsand boutiques.

BLUE STAR FERRIES: The new industry standard

for the Greek IslesBlue Star Ferries operates six

car-passenger ferries and onepassenger-only catamaran in theGreek Islands' routes connectingthe ports of Piraeus and Rafina tothe Cycladic Islands, Piraeus to theDodecanese and Crete and one fer-ry between Greece and Italy.

The Attica Group has adhered tothe Superfast concept in the devel-opment of the Blue Star Ferriesbrand for the Greek Isles. When theAttica Group acquired StrintzisLines, the company had a fleet of 12ferries with an average age of 22years. Today, the fleet has been re-branded as Blue Star Ferries, with atotal of 8 ferries and an average ageof 9 years.

With its dynamic fleet renewalprogram, Blue Star Ferries has tak-en delivery of five brand new shipssince 2000, which today serve theGreek Islands' routes setting newstandards in the transportation ofcargo and passengers.

Blue Star Ferries operates dailyand year-round with four car-passenger ferries and one passen-ger-only catamaran connecting theports of Piraeus and Rafina with theCycladic Islands such as Myconos,Santorini and Paros. It also has onecar-passenger ferry serving Rhodes,Kos and other islands of the Dode-canese, and one car-passenger ferryconnecting the port of Piraeus to theport of Chania in Crete.

Nicholas J. Theocarakis estab-lished the Theocarakis Group ofCompanies in 1924 in Piraeus,when he opened a gas station in Pi-raeus, along with a small store sell-ing automotive parts. A shortwhile later, he opened a secondstore in Athens, which was locatedat 6 Veranzerou Street. Just be-fore the outbreak of World War II,this small firm was to become thelargest importer of automotiveparts in Greece. In 1937, NicholasTheocarakis established a factoryfor the production of passenger carbrake linings, but the war broughtthis operation to an abrupt end in1940. During the same period, Mr.Theocarakis owned and operated asizable fleet of buses.

After the end of the war, Mr.Theocarakis entered the car-tirebusiness, and in 1957 he becamethe exclusive distributor for theYokohama Rubber Company inGreece. This led to the establish-ment in 1959 of the first joint-stockcompany (Société Anonyme) ofthe Group, Theocarakis S.A., themain business of which was the dis-tribution of Yokohama tires.

A milestone in the group’s histo-ry was 1961, when Nicholas Theo-carakis and his two sons, John andBasil, who were actively involved inthe business from an early age, be-came the exclusive distributors ofNissan automobiles in Greece. Infact, the Theocarakis family was thefirst distributor of Nissan MotorCo. Ltd. in Europe. Another So-ciété Anonyme was created exclu-sively for the distribution of Nis-san’s automobiles: N.J.TheocarakisS.A. This company was soon to be-come the flagship of the Group,since the exceptional reliability,overall quality and the competitivepricing of Nissan’s passenger carsand pickup trucks (marketed underthe Datsun trademark at the time)quickly made a favorable impres-sion on the Greek market, and thename Theocarakis became insepa-rably linked with that of Nissan inGreece.

In 1976, Theocarakis Groupfounded Teo Shipping Corp., ashipping enterprise that operates afleet of modern bulk carriers andcontainers. In 1976, Teocar SAwas established for the manufac-ture of cargo beds for Nissan’spickups, at the same location inAthens where the family’s brakefactory had been before the war.

Teocar evolved into the major in-dustrial arm of the Group, and in1978 began preparations for theestablishment of a car & pickupassembly plant in the Volos In-dustrial Area.

Basil N. Theocarakis: Leading the Group’s expansion

and diversification1980 was a watershed year in

the Theocarakis Group’s history.John N. Theocarakis, the Group’sDeputy Managing Director, only51 years old at the time, passedaway in January, only to be fol-

lowed by his father Nicholas inMarch of the same year. As aresult, Basil N. Theocarakis as-sumed the leadership of the Groupas the Chairman of the Board andManaging Director of the Group’scompanies, a position that he holdsto this day.

Born in Piraeus Greece, BasilN. Theocarakis is a graduate of the

Law Faculty of Athens University.He is fluent in both English andFrench, and has served as an offi-cer in the Hellenic Army.

Basil N. Theocarakis first be-came involved in the family busi-ness at the young age of 15.However, under his guidance since1980, the Theocarakis Group hasgrown and expanded rapidly viathe establishment of a multitude ofnew companies.

Mr. Theocarakis has been aprominent figure in the Greekbusiness community for more than45 years. During that time, he has

participated in several Govern-ment Committees, and is a mem-ber of Greece’s Chamber of Com-merce and Industry, as well as theNational Chamber of the Arts.

Basil N. Theocarakis is amongthe founders and a major share-holder of Egnatia Bank, a privatecommercial bank listed on theAthens Stock Exchange. He hasserved as the bank’s Chairman ofthe Board since 1993.

He also actively participates inthe management of Hyatt Regen-cy Hotel Corp., which owns theHyatt Regency Hotel and Casinoin Thessaloniki, and is also listedon the Athens Stock Exchange.

Since 2003, Basil N. Theo-carakis has also served as Chair-man of the Board of PerseusHealth Care SA – MetropolitanHospital, a private medical cliniccatering to the high end of themarket.

Aside from his business activi-ties, Basil N. Theocarakis is a well-known painter and has exhibitedhis works on numerous occasions,both in Greece and abroad.Throughout his university years,he studied at the atelier of inter-nationally acclaimed painter S. Pa-paloukas. Today, Mr. Theocarakis’paintings can be found at variouspublic spaces, art museums (in-cluding the Greek NationalGallery), and several bank andprivate collections.

Mr. Theocarakis has beenawarded the title of the Chevalierdans l' Ordre de la Légion d' Hon-neur by the French government forhis contributions to the Art andBusiness world. He has also beenawarded the title of Officialus Ar-chon by the Ecumeniacal Patriar-chate in 1999. In 2004, Mr. Theo-carakis, along with his wife Mari-na, established a Foundation dedi-cated to the promotion of the Artsand Music

He is married to MarinaAlexandris, and has two daugh-ters, which are both actively in-volved in the family business.

THE THEOCARAKIS GROUP

The Group’s Timeline1924: Establishment of the first gas station & automobile parts store

in Piraeus by Nicholas J. Theocarakis 1937: Establishment of an automobile brake and trim factory in

Aigaleo, Thivon str.1959: Establishment of the group’s first S.A. under the trade name

THEOCARAKIS S.A. for the distribution of YOKOHAMAtires.

1961: Nicolas J. Theocarakis becomes the exclusive distributor ofNISSAN MOTOR CO. for Greece.

1965: Nicolas J. Theocarakis’ small private firm becomes a publicstock company (Societe Anonyme) under the trade name NIC.J. THEOCARAKIS S.A.

1976: Establishment of TEO SHIPPING CORP.1978: Establishment of TEOCAR S.A. 1980: ñ Commencement of TEOCAR S.A.’s production in Febru-

ary.ñ Basil N. Theocarakis, Deputy Managing Director at thetime, assumes leadership of the Group as the Chairman of theBoard and Managing Director of the Group’s companies.

1981: TECOM S.A. is established for the manufacture of car seats,leather upholstery and auto parts.

1982: TEOROCHE S.A. is established as the exclusive distributor ofYves Rocher phytogenic cosmetics.

1989: Establishment of TEODOMI S.A., a construction company. 1991: ñ Acquisition of DIMITRIADIS – THREE DELTA S.A., the

oldest fine worsted fabrics’ manufacturer in Greece.ñ Participation of the Group in the establishment of EGNA-TIA BANK S.A.

1992: THEOCARAKIS S.A becomes the exclusive distributor ofDAEWOO ELECTRONICS Co. household electrical appli-ances.

1993: ñ Election of Basil N. Theocarakis as Chairman of the Boardin EGNATIA BANK S.A.ñ Involvement of NIC. J. THEOCARAKIS S.A. in the con-struction, installation and management of car parking systems.

1994: Launch of HYATT REGENCY CASINO & HOTEL inThessaloniki.

1997: Establishment of PRAXIS S.A, The Group enters long-termcar lease.

1998: EGNATIA BANK takes over the Bank of Central Greece.2000: Establishment of MEGA DRIVE S.A. a used car management

company. 2001: ñ METROPOLITAN Hospital of PERSEUS HEALTH

CARE S.A. begins operation.ñ Establishment of TEOTEC S.A., The Group expands in thefield of high technology, information systems & telecommuni-cations.

2003: Election of Basil N. Theocarakis as Chairman of the Board ofMETROPOLITAN Hospital S.A.

In February 1980, the first"Made in Greece" Nissan rolled-off the plant’s assembly line. Theplant remained in operation until1995, having produced a total of170.000 cars and pickups. By then,the Theocarakis Group had man-aged to augment the already suc-cessful presence of Nissan inGreece’s automotive market bykeeping it in the top sales positionfor 14 consecutive years (1979-1993). In 1982, another company,

Tecom SA, was established adja-cent to the Teocar plant in Volos,for the manufacture of car seatsand parts to be used in the vehicleassembly process. Subsequent tothe termination of vehicle produc-tion in Greece, Tecom specializesin the production of office fur-niture systems and leather uphol-stery for automobile interiors.

The Theocarakis Group is thedistributor of a large number ofproducts, apart from cars, light

trucks and tires, which form themajor distribution activity of theGroup. They include: Nissan fork-lifts and heavy machinery, Clarionautomotive audio/visual systems,Daewoo and Beco household elec-trical appliances, Suzuki marineoutboard motors, Same, Deutz-Fahr and Universal farming trac-tors, Merlo concrete cementmixers, Sonnenschein car bat-teries, Cromoruote alloy wheels,as well as Wynn’s and Permatex

specialty chemical products andlubricants.

Through Teoroche SA, estab-lished in 1982, the TheocarakisGroup is the exclusive distributorof Yves Rocher phytogenic cos-metics for Greece, while TeotecSA (established in 2001) is theGroup’s venture in the field of hi-tech information systems &telecommunications.

Teodomi SA, a constructioncompany, is active in the private

and public sector with an im-portant portfolio of works. Since1997, the Group also includesPraxis Lease, a long-term car fleetleasing company, and Mega DriveSA, a used car management com-pany.

The Theocarakis Group ofCompanies has also been activelyinvolved with mechanical parkingsystems since 1993. A mechanicalparking facility with 231 spaces(Robopark) that is currently oper-

ated by Nic.J.Theocarakis SA wasestablished in 1999 in the center ofAthens. The Group has also con-structed and operated the parkingmanagement systems at two Greekairports, and has constructed andinstalled mechanical parkingsystems in several other locationsthroughout Greece, among whichis Europe’s biggest undergroundmechanical parking system with1,100 parking spaces at the YMCACenter in Thessaloniki.

The Theocarakis Group becomes one of Greece’s largest industrial and commercial conglomerates

Basil N. Theocarakis

Pericles S. Panagopulos: Founder and guiding force of Greece’s Attica Group

We are committed to offering a memorable Superfast Experience to our customers

every time they travel with us...[ ]Pericles Panagopulos

8 THE NATIONAL HERALD, MARCH 5, 2005