LAMBRAKIS PRESS GROUP THE BOARD OF DIRECTORS REPORT ON THE CONSOLIDATED STATEMENTS OF THE FINANCIAL YEAR 2006

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1 THE BOARD OF DIRECTORS REPORT ON THE CONSOLIDATED STATEMENTS OF THE FINANCIAL YEAR

2 THE BOARD OF DIRECTORS REPORT ON THE CONSOLIDATED STATEMENTS To the Ordinary Annual General Meeting of the Shareholders of the Company Ladies and Gentlemen, Our holding percentages and the nominal financial value of each share in the above companies on are the following: We are honoured to submit to the General Meeting the Annual Financial Statements of the fiscal year 2006 prepared under the Law that refer to the Companies: LAMBRAKIS PRESS and its affiliates MULTIMEDIA, ΝΕΑ ΑΚΤΙΝΑ, STUDIO ΑΤΑ, SPECIAL PUBLICATIONS., MC HELLAS, HEARST LAMBRAKIS PUBLISHING LTD, ACTION PLAN, ACTION PLAN H.R.. EUROSTAR, MIKRES AGGELIES, TRIAINA TRAVEL, IRIS PRINTING, DOL DIGITAL, RAMNET, RAMNET SHOP, ELLINIKA GRAMMATA and MICHALAKOPOULOU REAL ESTATE-TOURIST. Our holding percentages and the nominal financial value of each share in the above companies on are the following: Nominal value Holding % per share (in euros) MULTIMEDIA 100,00% 29,35 ΝΕΑ ΑΚΤΙΝΑ 50,50% 2,93 STUDIO ΑΤΑ 99,30% 29,35 SPECIAL PUBLICATIONS 100,00% 3,00 MC HELLAS 50,00% 29,35 HEARST-LAMBRAKIS PUBLISHING LTD 50,00% 30,00 ACTION PLAN 85,00% 29,35 ACTION PLAN H.R. 85,15% 3,00 EUROSTAR 95,50% 30,00 TRIAINA TRAVEL 95,50% 30,00 IRIS PRINTING 50,00% 3,00 DOL DIGITAL 82,62% 5,88 RAMNET 82.62% 29,35 RAMNET SHOP 82,62% 29,35 ELLINIKA GRAMMATA 51,00% 29,35 MICHALAKOPOULOU TOURIST REAL ESTATE 100,00% 100,00 MIKRES AGGELIES 33,33% 5,00 2

3 The principal points of the activity and the earnings of the fiscal year 2006 are as follows: - On the turnover reached thousand euros vs thousand euros in the previous year. - The gross operating profit reached thousand euros vs thousand euros of the previous year. - The total non current assets of the Group reached thousand euros vs thousand euros in the previous year, decreasing by thousand euros. The regulations of art. 101 to 107 of Codified Law 2190/1920 were applied in the preparation of the Consolidated Financial Statements of this year so as to give a fair presentation of the asset structure, the financial position and the income statement of the consolidated companies. The following table presents the consolidated equity as they stand on and in the previous fiscal year. Total equity (in thousand euros) Share capital Difference from the issue of shares above par Reserves Retained earnings Minority interests The equity to debt ratio for the year 2006 reached 0,629, while for the year 2005 it was 0,647. 3

4 TRANCTIONS OF THE COMPANY WITH ITS AFFILIATES (ART. 2 OF LAW 3016/2002) 1. INTERCOMPANY BALANCES OF DEBTORS SUPPLIERS ON (IN THOUND EURO) HEARST COMPANY HAVING THE LIABILITY SPECIAL NEA AKTINA LP LAMBRAKIS MC HELLAS PUBLICATIONS LTD LP 1.237, , , ,07 HEARST LAMBRAKIS LTD 396, ,81 MC HELLAS 257,89 SPECIAL PUBLICATIONS AS 2.435, , ,08 NEA AKTINA MIKRES AGGELIES IRIS PRINTING , , , , ,23 MULTIMEDIA , , , ,35 EUROSTAR ,94 207, ,00 TRIAINA TRAVEL LP DIGITAL RAMNET , ,50 MICHALAKOPOULOU ACTION PLAN , ,08 ACTION PLAN HR STUDIO ATA RAMNET SHOP 2.433,00 76,00 614,00 ELLINIKA GRAMMATA ,73 45,00 TOTAL LIABILITIES , , , , ,30 COMPANY HAVING THE LIABILITY MIKRES AGGELIES IRIS PRINTING MULTIMEDIA EUROSTAR LP 195,16 549,07 774, ,34 HEARST LAMBRAKIS LTD MC HELLAS SPECIAL PUBLICATIONS AS NEA AKTINA MIKRES AGGELIES 4.925,41 IRIS PRINTING , , ,02 MULTIMEDIA 1.449, , ,30 EUROSTAR 1.686,96 TRIAINA TRAVEL 2.252,64 LP DIGITAL RAMNET 150,00 MICHALAKOPOULOU ACTION PLAN 1.011,29 ACTION PLAN HR STUDIO ATA RAMNET SHOP 2.795, , , ,00 ELLINIKA GRAMMATA 1.049,90 195,61 TOTAL LIABILITIES , , , ,71 4

5 COMPANY HAVING THE LIABILITY LP TRIAINA ACTION PLAN DIGITAL RAMNET MICHALAKOPOULOU TRAVEL LP 1.267, , ,29 118, ,24 HEARST LAMBRAKIS LTD MC HELLAS SPECIAL PUBLICATIONS AS NEA AKTINA MIKRES AGGELIES 2.586,49 IRIS PRINTING ,50 MULTIMEDIA 8.079, , ,14 EUROSTAR , ,45 TRIAINA TRAVEL LP DIGITAL RAMNET MICHALAKOPOULOU ACTION PLAN 2.091,50 ACTION PLAN HR STUDIO ATA RAMNET SHOP 2.837, ,49 ELLINIKA GRAMMATA TOTAL LIABILITIES , , ,97 118, ,86 COMPANY HAVING THE LIABILITY ACTION PLAN HR STUDIO ATA RAMNET SHOP ELLINIKA GRAMMATA TOTAL RECEIVABLES LP 3.630,88 806, , , ,46 HEARST LAMBRAKIS LTD 7.924,08 MC HELLAS 257,89 SPECIAL PUBLICATIONS AS 4.593, ,28 NEA AKTINA 320, , ,02 MIKRES AGGELIES 107, ,00 IRIS PRINTING , ,19 MULTIMEDIA 143, , ,35 EUROSTAR 1.877, ,88 TRIAINA TRAVEL 2.252,64 LP DIGITAL 0,00 RAMNET , ,26 MICHALAKOPOULOU 0,00 ACTION PLAN , , ,09 ACTION PLAN HR 0,00 STUDIO ATA 0,00 RAMNET SHOP 8.102, ,95 ELLINIKA GRAMMATA 1, , ,92 TOTAL LIABILITIES ,88 915, , , ,01 5

6 2) INTERCOMPANY BALANCES OF OTHER SHORT-TERM RECEIVABLES - LIABILITIES OF AFFILIATED COMPANIES ON (IN THOUND EUROS) COMPANY HAVING THE LIABILITY HEARST MC HELLAS SPECIAL NEA AKTINA LP LAMBRAKIS PUBLICATIONS LTD LP , , , ,93 HEARST LAMBRAKIS LTD 862, ,97 MC HELLAS , ,61 SPECIAL PUBLICATIONS AS ,86 631,02 NEA AKTINA MIKRES AGGELIES ,23 IRIS PRINTING ,92 MULTIMEDIA EUROSTAR TRIAINA TRAVEL 238,00 LP DIGITAL RAMNET ,10 312, ,43 MICHALAKOPOULOU ACTION PLAN 1.274,40 ACTION PLAN HR STUDIO ATA RAMNET SHOP ELLINIKA GRAMMATA TOTAL LIABILITIES , , , , ,93 COMPANY HAVING THE LIABILITY MIKRES AGGELIES IRIS PRINTING MULTIMEDIA EUROSTAR LP , , , ,19 HEARST LAMBRAKIS LTD MC HELLAS 2.985,47 413,00 SPECIAL PUBLICATIONS AS 153,40 NEA AKTINA MIKRES AGGELIES IRIS PRINTING MULTIMEDIA EUROSTAR TRIAINA TRAVEL LP DIGITAL 1.785,00 RAMNET 531,00 MICHALAKOPOULOU ACTION PLAN ACTION PLAN HR STUDIO ATA RAMNET SHOP ELLINIKA GRAMMATA TOTAL LIABILITIES , , , ,59 6

7 COMPANY HAVING THE LIABILITY TRIAINA TRAVEL LP DIGITAL RAMNET MICHALAKOPOULOU ACTION PLAN LP , , , ,67 HEARST LAMBRAKIS LTD MC HELLAS 897,31 SPECIAL PUBLICATIONS AS NEA AKTINA MIKRES AGGELIES IRIS PRINTING MULTIMEDIA EUROSTAR 5.977,59 TRIAINA TRAVEL LP DIGITAL ,54 RAMNET MICHALAKOPOULOU ACTION PLAN ACTION PLAN HR STUDIO ATA RAMNET SHOP ELLINIKA GRAMMATA TOTAL LIABILITIES , , ,28 0, ,98 COMPANY HAVING THE LIABILITY ACTION PLAN STUDIO ATA RAMNET ELLINIKA GRAMMATA TOTAL HR SHOP RECEIVABLE LP , , , , ,22 HEARST LAMBRAKIS LTD 190, ,07 MC HELLAS ,03 SPECIAL PUBLICATIONS AS ,28 NEA AKTINA 0,00 MIKRES AGGELIES ,23 IRIS PRINTING ,92 MULTIMEDIA 0,00 EUROSTAR 5.977,59 TRIAINA TRAVEL 238,00 LP DIGITAL , ,04 RAMNET ,66 MICHALAKOPOULOU 0,00 ACTION PLAN , ,02 ACTION PLAN HR 0,00 STUDIO ATA 0,00 RAMNET SHOP 0,00 ELLINIKA GRAMMATA 0,00 TOTAL LIABILITIES , , , , ,06 7

8 3. INTERCOMPANY BALANCES OF CHEQUES ON (IN THOUND EUROS) COMPANY HAVING RECEIVABLE COMPANY HAVING LIABILITY HEARST NEA AKTINA IRIS PRINTING LP LAMBRAKIS MC HELLAS LTD LP , ,62 HEARST LAMBRAKIS LTD MC HELLAS NEA AKTINA IRIS PRINTING , ,12 MULTIMEDIA EUROSTAR 2.948, ,93 STUDIO ATA ELLINIKA GRAMMATA ,00 TOTAL LIABILITIES , , , , ,62 COMPANY HAVING RECEIVABLE COMPANY HAVING LIABILITY MULTIMEDIA EUROSTAR STUDIO ATA ELLINIKA GRAMMATA TOTAL RECEIVABLES LP , , ,10 HEARST LAMBRAKIS LTD 0,00 MC HELLAS 0,00 NEA AKTINA 7.823, ,06 IRIS PRINTING , ,78 MULTIMEDIA , ,38 EUROSTAR 8.854, , ,67 STUDIO ATA 0,00 ELLINIKA GRAMMATA ,00 TOTAL LIABILITIES 0,00 0, , , ,99 8

9 4 INTERCOMPANY BALANCES OF ADVANCE PAYMENTS OF DEBTORS SUPPLIERS ON (IN THOUND EUROS) COMPANY HAVING COMPANY HAVING RECEIVABLE TOTAL RECEIVABLES LIABILITY LP STUDIO ATA LP 0,00 0,00 0,00 STUDIO ATA ,00 0, ,00 TOTAL LIABILITIES ,00 0, ,00 5. INTERCOMPANY BALANCES OF BAD DEBTORS ON (IN THOUND EUROS) COMPANY HAVING COMPANY HAVING RECEIVABLE TOTAL RECEIVABLES LIABILITY LP LP DIGITAL LP 0, , ,46 TOTAL LIABILITIES 0, , , INTERCOMPANY BALANCES OF BILLS OF EXCHANGE OVERDUE ON (IN THOUND EUROS) COMPANY HAVING COMPANY HAVING RECEIVABLE TOTAL RECEIVABLES LIABILITY LP RAMNET LP 0, , ,47 TOTAL LIABILITIES 0, , ,47 9

10 7) INTERCOMPANY TRANCTIONS (WRITTEN OFF) PURCHASING COMPANY SELLING COMPANY LP HEARST LAMBRAKIS LTD MC HELLAS SPECIAL PUBLICATIONS NEA AKTINA LP , , , ,66 HEARST LAMBRAKIS LTD 9.919, ,16 MC HELLAS , ,83 SPECIAL PUBLICATIONS AS ,91 530,27 NEA AKTINA 1.300,00 MIKRES AGGELIES ,23 IRIS PRINTING , , , , ,39 MULTIMEDIA , , , ,46 EUROSTAR , , , ,32 TRIAINA TRAVEL LP DIGITAL RAMNET , ,25 MICHALAKOPOULOU ,02 ACTION PLAN ,67 ACTION PLAN HR STUDIO ATA RAMNET SHOP ,77 63,87 515,97 879,83 254,39 ELLINIKA GRAMMATA , ,00 TOTAL PURCHASES , , , , ,44 PURCHASING COMPANY SELLING COMPANY MIKRES AGGELIES IRIS PRINTING MULTIMEDIA EUROSTAR LP , , , ,02 HEARST LAMBRAKIS LTD MC HELLAS SPECIAL PUBLICATIONS AS NEA AKTINA MIKRES AGGELIES 1.049,00 IRIS PRINTING , , ,92 MULTIMEDIA , , ,09 EUROSTAR , ,67 TRIAINA TRAVEL ,17 LP DIGITAL RAMNET MICHALAKOPOULOU ACTION PLAN ACTION PLAN HR STUDIO ATA RAMNET SHOP 2.349, , , ,69 ELLINIKA GRAMMATA 1.004,69 211,89 97,49 TOTAL PURCHASES , , , ,38 10

11 PURCHASING COMPANY SELLING COMPANY TRIAINA TRAVEL LP DIGITAL RAMNET MICHALAKOPOULOU ACTION PLAN LP 8.729, , ,20 19, ,04 HEARST LAMBRAKIS LTD MC HELLAS SPECIAL PUBLICATIONS AS NEA AKTINA MIKRES AGGELIES 1.597,94 IRIS PRINTING 9.550,00 MULTIMEDIA 3.596,81 276, ,87 EUROSTAR , ,77 624,00 TRIAINA TRAVEL LP DIGITAL ,54 RAMNET MICHALAKOPOULOU ACTION PLAN 1.539,09 ACTION PLAN HR STUDIO ATA RAMNET SHOP 4.114,54 ELLINIKA GRAMMATA ,63 TOTAL PURCHASES , , ,39 19, ,48 PURCHASING COMPANY SELLING COMPANY ACTION PLAN HR STUDIO ATA RAMNET SHOP ELLINIKA GRAMMATA TOTAL LES LP 3.956, , , , ,70 HEARST LAMBRAKIS LTD 160, ,29 MC HELLAS ,01 SPECIAL PUBLICATIONS AS 820, ,18 NEA AKTINA , ,00 MIKRES AGGELIES 75, ,17 IRIS PRINTING , ,69 MULTIMEDIA 36, , ,81 EUROSTAR ,81 221, , ,53 TRIAINA TRAVEL 89, ,07 LP DIGITAL , ,54 RAMNET 4.500, , ,92 MICHALAKOPOULOU ,02 ACTION PLAN , , , ,59 ACTION PLAN HR 0,00 STUDIO ATA 0,00 RAMNET SHOP 54, , ,71 ELLINIKA GRAMMATA 530, ,23 115, ,37 TOTAL PURCHASES , , , , ,60 11

12 The analysis of intercompany transactions per class and general ledger account are detailed in the following table: General Ledger account Account description Total Sales of merchandise , Sales of finished & unfinished goods , Sales of other inventories and raw materials 361, Domestic sales of services , Other income , Capital Income , Value of sponsored inventories. 416,61 TOTAL ,60 The consolidated earnings of the companies on as well as those of the previous year are as follows: Sales , ,44 Loss after tax , ,39 Less: minority interests , ,71 Net consolidated earnings of the Group , ,10 In the period between the end of the fiscal year to the preparation of this Report there were no significant event affecting materially the financial standing and the asset status of the consolidated companies. 12

13 THE PRESIDENT OF THE BOARD OF DIRECTORS THE VICE PRESIDENT OF THE BOARD AND MANAGING DIRECTOR THE MEMBERS OF THE BOARD OF DIRECTORS Chr. Lambrakis St. Psycharis El. Glykatzi - Ahrweiler I. Goumas P. Kapsis N. Koritsas Tr. Koutalidis K. Lymberopoulos Ad. Pepelasis Gr. Skalkeas Exact copy Athens, March 6, 2006 The President of the Board of Directors Christos D. Lambrakis It is hereby certified the above report consisting of 20 pages is the one mentioned in the audit certificate signed on Athens, March 6, 2006 THE CERTIFIED AUDITORS ACCOUNTANTS CHARALAMBOS AR. PETROPOULOS Reg. No. S.O.E.L SOL 13

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