Press Release - 26.08.2004

PPC's first half 2004 financial results: Improvement of results compared to first half 2003

PUBLIC POWER CORPORATION S.A.
COMMUNICATION DEPARTMENT

PRESS RELEASE

PPC's first half 2004 financial results: Improvement of results compared to first half 2003

Net Income amounted to Euro 192,9 m up by 9,8% from 1H 2003. Decrease of net debt to Euro 3.852 m, compared to June 2003 [1]

Total revenues grew by 4,6% as compared to first half 2003 and amounted to € 2.003 m. Revenues from energy sales increased by 4,4%, due to relatively mild weather conditions.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 12,9%, from € 582,7 m to € 657,9 m and Operating Profit by 20,2% from € 318,6 m to € 383,1 m, due to revenue growth, higher operating efficiency levels and containment of operating costs, despite increased maintenance and materials’ consumption costs, in preparation for the Summer Olympics.
EBITDA margin reached 32,8% compared to 30,4% in the first half of 2003.
Profit before tax increased by 8,6%, from € 287,3 m to € 311,9 m.
Negative Foreign Exchange Differences of € 17,5 m, compared to the corresponding positive figure of € 47,8 m for the first half of 2003, led to an increase of Financial Expenses.
The share of loss in associated companies decreased to € 7,0 m from € 18,7 m , in the first half of 2003 and corresponds to PPC’s investment after tax, in the telecommunications company’s, Tellas S.A., 1H 2004 Financial Results.
Net income grew by 9,8% to € 192,9 m from € 175,7 m, due to improved operating profitability and despite increased financial expenses. As a result, earnings per share increased from € 0,76 to € 0,83.
Capital expenditure amounted to € 363,8 m and includes the cost of Olympic projects under construction, during the first half of 2004.
Compared to June 2003, net debt decreased to € 3.852 m from € 4.005 m.
Current headcount, excluding personnel assigned to HTSO, decreased, as a result of natural attrition to approximately 27.800, as compared to approximately 28.400 employees, at the end of 1H 2003.

[1] The financial information contained in this statement has been prepared according to International Financial Reporting Standards, formerly International Accounting Standards.

Summary Financials (Euro m)

	1H 2004 Unaudited	1H 2003 Audited	Δ (%)
Total Revenues	2.002,9	1.915,2	4,6%
EBITDA	657,9	582,7	12,9%
EBITDA Margin	32,8%	30,4%	-
Profit from Operations (EBIT)	383,1	318,6	20,2%
EBIT Margin	19,1%	16,6%	-
Net Income	192,9	175,7	9,8%
EPS (in Euro)	0,83	0,76	-
No. of Shares (m)	232	232	-
Net Debt	3.851,5	4.005,3	-3,8%

Public Power Corporation’ s Chief Executive, Stergios Nezis, said:

"Despite a 1% growth in electricity demand, due to mild weather conditions during the first half of the year, profits from operations increased by 20% as a result of the sustained drive in achieving higher operating efficiency levels and the containment of operating costs. We firmly believe that the increase of value to stakeholders, which remains PPC’s paramount objective, is best served by the continuation of a solid financial policy and performance".

For further information, please contact:

Gregoris Anastasiadis Chief Financial Officer Tel.: +32 10 522 5346

Summary Profit & Loss (Euro m)

	1Η 2004 Unaudited	1Η 2003 Audited	Δ (%)
Total Revenues	2.002,9	1.915,2	4,6%
Total Operating Expenses (excl. depreciation)	1.345,0	1.332,5	0,9%
Total Payroll Expenses	568,3	563,3	0,9%
Total Fuel Expenses	323,3	352,2	-8,2%
Energy Purchases	74,6	64,2	16,2%
Transmission System Usage	127,4	122,5	4,0%
Other Operating Expenses	251,4	230,3	9,2%
(EBITDA)	657,9	582,7	12,9%
EBITDA Margin (%)	32,8%	30,4%	-
Depreciation & Amortization	274,8	264,1	4,1%
Profit from Operations (EBIT)	383,1	318,6	20,2%
EBIT margin (%)	19,1%	16,6%	-
Total Financial Expenses	71,2	31,3	127,5%
- Net Financial Expenses	56,0	69,2	-19,1%
- Foreign Currency Gains/(Losses)	-17,5	47,8	-
- Other Income	9,3	8,8	5,7%
- Share of loss in associated companies	7,0	18,7	-62,6%
Pre-tax Profits	311,9	287,3	8,6%
Net Income	192,9	175,7	9,8%
EPS (in Euro)	0,83	0,76	-

Summary Balance Sheet and Capex (Euro m)

	1H/2004 Unaudited	1H/2003 Audited	Δ (%)
Net Debt	3.851,5	4.005,3	-3,8%
Total Equity	3.515,7	3.349,6	5,0%
Capital Expenditure	363,8	301,2	20,8%

PPC's first half 2004 financial results: Improvement of results compared to first half 2003

PRESS RELEASE

ATHENS, August 26, 2004 FROM THE PRESS OFFICE