Press Release for Financial Results H1/Q2 2002

PPC continues its strong financial performance throughout 1H 2002:

• Revenues increased by 10.2% to Euro 1,623 million
• Pre-tax Profits increased by 94.4% to Euro 281 million

Note: Based on Unaudited IAS Financial Statements


1H2002 Highlights

• Total revenues increased by 10.2% to Euro 1,623 million, driven by a 6.9% consumption growth and a 3.6% tariff increase effective as of July 2001.
• Total operating expenses (excluding depreciation) increased by 5.0% to Euro 1,114 million:
  
  - Total payroll costs increased by 8.4% to Euro 505 million.
  
  - Fuel costs decreased by 5.1% to Euro 339 million mainly due to a 14.5% reduction in natural gas costs.
  
  - Other operating expenses increased by 13.4% to Euro 270 million reflecting mainly increased electricity imports.
• EBITDA increased by 23.8% to Euro 509 million, driven by revenue growth and the lower increase of operating expenses. EBITDA margin increased to 31.4% compared to 27.9% in 1H 2001.
• EBIT increased by 30.6% to Euro 371 million with an EBIT margin of 22.8%.
• Non-operating expenses were reduced to Euro 90 million, a 35.6% decrease compared to 1H2001, mainly as a result of:
  
  - Lower net interest expenses of Euro 112 million compared to Euro 133 million in 1H2001. This 15.9% decrease resulted from lower borrowing levels and decreased financing costs.
  
  - Foreign currency gains of Euro 17 million, compared to foreign currency losses of Euro 13 million in 1H2001, reflecting mainly gains from the devaluation of the Yen vs the Euro.
• Pre-tax profits grew by 94.4% to Euro 281 million reflecting the strong EBITDA / EBIT increase and the reduction of non-operating expenses.
• Net income amounted to Euro 177 million, with earnings per share of Euro 0.76.
• Net debt decreased to Euro 4,566 million (a reduction of Euro 200 million compared to FY2001 or a reduction of Euro 307 million compared to 1H 2001) reflecting PPC's continuous efforts to reduce current debt levels.
• Capital expenditure for 1H2002 amounted to Euro 313 million. Main projects include the completion of the Komotini and Florina power generation plants and the expansion of the transmission and distribution network.
• The 1H2002 IAS Financial Statements (and the comparable 1H2001) do not include adjustments for fixed assets as per the American Appraisal fixed asset valuation study. These adjustments will be reflected in the full year 2002 Financial Statements. The impact of these adjustments on the 1H2002 IAS Financial Statements would be as follows:
  
  - An increase in depreciation by Euro 118 million with a similar decrease in Pre-tax Profits.
  
  - An increase in Fixed Assets of Euro 2,553 million.
  
  - An increase in Total Equity of Euro 2,783 million.
• Current Headcount decreased to approximately 29,130 employees (compared to approximately 29,920 employees at 30th June 2001) as a result of natural attrition and selective hiring policies.

Summary Financials (Unaudited IAS, Euro million)

•  Under Greek GAAP revenues increased by 10.2% to Euro 1,614 million and Pre-tax Profits increased by 86.9% to Euro 249 million.

Public Power Corporation's Chief Executive Officer, Stergios Nezis, said:

"I am pleased to announce that PPC has delivered another set of solid financial results with Pre-tax Profits of Euro 281 million representing a 94% increase compared to 1H2001. This performance demonstrates our commitment to maximising shareholder value by capitalising on market growth prospects and improving our operating performance."

For further information, please contact:
Gregoris Anastasiadis, Chief Financial Officer, Public Power Corporation, Tel.: +30 10 522 5346.